State treasury set to suffer Rs 4,000 crore loss with ban on liquor on highways!

Pubs and bars located within 500 m of highways have less than 24 hours to close or relocate The Supreme Court judgement will have a drastic impact on the state revenue too Bengaluru, it is reported, shares 90 per cent of the total revenue

With just less than 24 hours left for the liquor outlets to shut down in view of the Supreme Court guideline prohibiting sale of liquor within 500 mts of highways, the state government is staring at the possible dry coffers. It is reported that the state treasury will suffer to the tune of Rs 4,000 crore with the SC direction.

For, these outlets hugely contribute to the State economy. Of the 10,000 liquor outlets in the state, 90 per cent of the revenue (from this business) comes from one thousand liquor shops in Bengaluru district (340 in the city) alone, reports Kannada Prabha.

In fact, in the last three years, from 40 to 90 per cent of the Excise tax is collected from Bengaluru city and district, alone. If the pubs, bars and even the star hotels (where liquor is served) in - MG Road, Brigade Road, Queen's Road, Dickenson Road,JC Road, Old Madras Road, Indiranagar, Shivajinagar, Vasanthnagar, Samangiramnagar and surrounding areas in Vidhana Soudha - are closed, the state's economy would be severely hit, reports Kannada Prabha.

In fact, the state government extended the nightlife in the city - after an aggressive campaign - up to 1 am only in last July. As a result, the business has gone up to Rs 1,500 crore in the last one year. Also, the Excise department receives at least 90 per cent of the revenue from the liquor outlets in Bengaluru district. These shops will be closed as four national highways pass through the Bengaluru district. 

In 2013-14, the State Excise Department had collected Rs 12,828 crore of which Bengaluru district alone had contributed Rs 4,403 crore, reports Kannada Prabha. In 2014-15, Bengaluru district's contribution to Excise department had gone up to Rs 4,884 crore in the total revenue of Rs 13,801 crore. In the financial year of 2016-17, the Bengaluru district alone pumped in a whopping Rs 15,989 crore in the total revenue of Rs 16,483 crore. These figures clearly indicate City's lion's share in the excise revenue. Now, with the Supreme Court's direction to close the liquor shops, not only the owners of these shops but the government is also in distress over the Supreme court judgement.

Meanwhile, the 1,981 bars that dot the highways have been asked to relocate by the Excise department, as chances of renewing their license is highly unlikely. Although the state government had appealed to denotify the state highways in a last-minute effort to save the liquor shops on highways, the Centre is yet to consider it. As a result, revenue to the tune of Rs 4,000 crore may be hit this year. This not only affects the excise revenue but will also have a drastic impact on even hotel industry and the tourism industry, reports Kannada Prabha.