Kerala: BEVCO likely to increase liquor price as gallonage fee increased in the state
BEVO MD Yogesh Gupta stated that the corporation's profits currently cover all employees' salaries and operational expenses. Any reduction in profits would directly impact all the compensations and benefits.
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FollowThiruvananthapuram: The Managing Director of BEVCO, Yogesh Gupta has sent a letter to the Excise Minister regarding the potential consequences of the increased gallonage fee proposed in the budget. Mr. Gupta emphasized that failure to withdraw the escalated fee would plunge BEVCO will raise the liquor prices again in the state. The fee has been increased sharply to generate an additional revenue of Rs 300 crore in the budget.
The gallonage fee, a tax levied on Bevco by the government for alcohol transfers from warehouses to outlets, currently stands at 5 paise per liter. However, the proposed hike would escalate it to Rs 10 per liter starting from the new financial year. Gupta highlighted that this move would result in Bevco incurring a staggering loss of Rs 300 crore.
Bevo's financial health has been precarious in the past, with the corporation grappling with losses when several outlets were forced to shut down and popular brands became unavailable. However, after three consecutive years of losses, Bevco managed to turn a profit in the financial year recording a substantial profit of Rs 124 crore.
Currently, Bevco pays Rs 1.25 crore annually as a gallonage fee. With the proposed increase, the corporation anticipates heavy losses. Bevco has urged the government to reduce the fee to avert potential adverse effects in its operations.
Gupta further stated that the corporation's profits currently cover all employee's salaries and operational expenses. Any reduction in profits would directly impact all the compensations and benefits. The Excise Department has also raised concerns about the lack of thorough deliberation preceding the fee increase.
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