Liquor may get costlier as Telangana government mulls price hike

This time with a revenue defict of Rs. 2,000 crore, the government is not expecting to reach the target without increasing the prices of liquor.

Hyderabad: The State government is reportedly mulling increasing liquor prices to overcome its revenue deficit. The government was expected to increase liquor prices by 10 percent to 15 percent with 20 percent being the outer limit on all varieties of liquor, ordinary, medium and premium.

Sources say the government’s Budget Estimates for 2024-25 predicted Rs. 25,617.53 crore in revenue from excise, however, the actual collections have fallen short by Rs 2,000 crore, hence this shortfall has created a pressing need for revenue-raising measures. During the previous fiscal year, while the State government estimated a revenue income of Rs 17,482.19 crore, it actually collected Rs 18,470.45 crore.

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However, this time with a revenue defict of Rs. 2,000 crore, the government is not expecting to reach the target without increasing the prices of liquor. Hence, a price increase was being seen as one of the most immediate solutions to reach the target, sources added.

The rate fixation committee was expected to make its recommendations soon following which a final decision on the price hike would be made, sources said, adding that the government was planning to increase the prices of beer by Rs. 20 and quarter bottle liquor by at least Rs. 20 to Rs.70. The prices of full bottle liquor was likely to increase by Rs. 70 to 300.

In the last five years, this would be the third price hike and the first by the Congress government since it was voted to power in December last. Last year, before assembly polls, the then BRS government had reduced the prices of liquor marginally.

It is learnt that all the breweries operating in the State have submitted a proposal before the Excise Committee to raise the prices by at least 20-25 percent, saying that their operating expenses have increased hugely and the prices have not been increased since 2021.

There are 2,620 A4 liquor shops, 1,200 bars and clubs in the State. Last year, the government earned a revenue of about Rs. 35,000 crore through the sale of liquor and it wants to increase it to Rs. 45,000 in the current financial year.