Is the government forcing Indian liquor down your throat?
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The Karnataka state excise department has been allegedly promoting the sale of Indian-made foreign liquor (IMFL) among the Bengaluru's bars and pubs to meet their revenue collection targets.
The liquor license holders are 'forced' to purchase IMFLs through restrictions on the supply of beer, which indirectly affects their beer stocks.
Liquor duty is one of the highest revenue-earning resources for the Karnataka government and the largest chunk of that revenue is earned from IMFLs. IMFL sales dropped by 7.58% in 2014-15 as compared to the sales in 2013-14. To pump in more revenue, the excise department has been "verbally" insisting liquor license holders purchase more of IMFL brands.
Excise commissioner Umashankar SR said, "There has been a natural growth of 6.75% in beer consumption whereas only a growth of 1.35% in IMFL consumption was reported in 2015-16."
In 2014, an excise rule involving the compulsory purchase of IMFL was revoked officially by the state government calling it "unconstitutional."
"It is unconstitutional for the state government to implement rules and laws that go against the health of its citizens. But, even if the rule was revoked in 2014, excise department officials verbally insist we purchase IMFLs. They have no other choice because they've to achieve targets set by the state government for revenue collection," said Ashish Kothare, head of the National Restaurant Association of India in Bengaluru.
He added, "Micro-breweries and pubs serving draft beer don't get affected by this as compared to bars serving hard liquor. The problem arises for establishments that serve bottled beers to their customers. They are asked to purchase IMFLs by the excise department every time they stock up."
When Asianet Newsable contacted the excise department to shed light over the accusations, the excise commissioner said, "Earlier such a rule existed but now I've clearly instructed the department that the earlier rule will not be followed and the license holders can purchase liquor as per their choice. If there are any such instances then it should be reported to my office."
