Excise privilege fee revamp puts Telangana bars, restaurants on protest path

The Telangana Bars and Restaurants Association has opposed the Excise department’s proposed revision of privilege fee, citing poor business, and urged the government to withdraw it. The association has also called for outlet closures and sought action against belt shops and permit rooms.

Hyderabad: The Telangana Bars and Restaurants Association has opposed the Excise department’s proposed revision of privilege fee and demanded that the government withdraw the proposal, citing poor business.

The association has also called upon its members to close their outlets as part of the protest against the proposed revision.

The Excise department generally collects privilege fee from wine shops, bars and restaurants based on their annual turnover. The fee was earlier fixed at five times the annual turnover and was later increased to seven times the total turnover.

However, many bar and restaurant managements hardly achieve three to four times the total turnover. As a result, the government has been unable to collect the prescribed privilege fee from these establishments.

There are nearly 1,700 registered bars and restaurants in the State. There have also been complaints that some bars and restaurants sell liquor at prices higher than the MRP, unlike conventional wine shops, which sell liquor at the MRP.

To ensure that these establishments pay the privilege fee, the department has now proposed collecting the fee at the Point of Sale, based on the quantum of liquor stocks purchased from the Telangana State Beverages Corporation Limited.

The proposed system would be implemented through slabs. For instance, if a bar or restaurant purchases liquor stocks worth Rs 33 lakh, it would have to pay a six per cent privilege fee on the licence fee.

A note to this effect was sent to the Cabinet for approval. It is learnt that the Cabinet has approved the proposal, and a formal government order is expected shortly.

However, the Telangana Bars and Restaurants Association has opposed the proposal and demanded that the department withdraw it. The association has also demanded that belt shops and permit rooms within the Greater Hyderabad Municipal Corporation limits be closed.