Andhra Pradesh govt mulls slashing additional retail tax to relieve tipplers

Vijayawada: The state government is contemplating reducing liquor price by lowering additional retail tax (ART). In a bid to discourage liquor consumption, the state government had increased the prices on multiple occasions. However, considering the recent deaths reported due to consumption of sanitizer and increased liquor smuggling across state borders, the government is considering lowering the prices.
The excise department has sent proposals to the government over reduction of ART, which was imposed on liquor after wine shops were reopened post lockdown.The state government had imposed an additional 25% ART and increased the prices by 50% taking the total price hike to 75% after lockdown norms were eased.
Rajat Bhargava, special chief secretary for revenue, said in the orders that the increase in prices of liquor is in line with the state government’s policy to implement complete prohibition in a phased manner. It is also to discourage people from coming out from their homes during the pandemic.
The state government’s decision, however, had some serious consequences. Addicts started consuming alcohol-based hand sanitizers, which are available at a cheaper price than liquor. While deaths were reported across the state due to consumption of hand sanitizer, the Kurichedu incident where 16 people died due to consumption sanitisers highlighted the enormity of the problem.
On the other hand, liquor smuggling rose across all districts, which shared borders with other states. Curbing liquor smuggling has become a Herculean task for the Special Enforcement Bureau (SEB) and the police. Besides, officials also identified that the state was losing revenue to other states.
Considering all the aspects, the state government is contemplating reviewing the prices of liquor. Sources said there are chances that the ART may be reduced to pre-lockdown levels and the price difference in liquor procurement cost for wine shops and bars may also be reduced, although bars are yet to be opened.