Telangana Benefits From Application Fee For Liquor Shops

The Prohibition and Excise Department managed to raise Rs 2,639 crore without selling a single bottle of alcohol, which is a record high for Telangana.

For the allocation of 2,620 liquor stores, the government charged a non-refundable application fee of Rs 2 lakh on approximately 1.32 lakh applicants.

Lottery allocation

On Monday, the procedure of issuing licenses after lottery district-by-district allocation took place.
Depending on the population of the region where the store has been assigned, those who obtain the license must pay a licence charge ranging from Rs 50 lakh to Rs 1.1 crore annually. By August 23rd, they must pay a sixth of the yearly license price.

Therefore, a retail excise business in a neighborhood with fewer than 5,000 people would pay Rs 50 lakh, while the owner of a retail shop in a neighborhood with more than 20 lakh people will pay Rs 1.1 crore annually.

Collection quadrupled

When licenses were given two years ago, the collection this year nearly quadrupled from the Rs 1,370 crore received from around 69,000 applicants. The government received Rs. 3,500 from the store license fee.

Traders can make 27% for a “ordinary” brand and 20% for premium variants in terms of margin.
It’s interesting to note that there is reservation in the allocation of licenses as well, with 786 licenses, or 30%, going to underprivileged groups. Out of this, 15% would go to Gowdas, who historically work in toddy tapping and the selling of alcoholic beverages, 10% will go to Scheduled Castes, and 5% will go to Scheduled Tribes.

Applications and the non-refundable Rs 2 lakh application fee were accepted starting on August 4 and continued through Friday. Since the previously issued licenses are still valid as of December 1, the stores may start operating then.

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Use of alcohol has increased

The election season will soon be upon us this year and the following year, according to those with knowledge of the situation who spoke on the condition of anonymity. The use of alcohol has increased alongside economic expansion, supporting business conferences, hospitality, and tourism. According to the individuals above stated, more people are eager to enter the industry as a result.

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There will be 615 stores in Hyderabad. Serilingampally, which is between the airport and the Hyderabad IT corridor in the Shamshabad neighborhood, has submitted the most applications. 10,908 applications were said to have been submitted for a business in Hyderabad’s Saroornagar neighborhood.

There were applications from other states outside Telangana, including a substantial number from Andhra Pradesh.
Telangana saw a rise in alcohol sales revenue from Rs 12,703 crore in 2015–16 to Rs 25,585 crore in 2021–22. Sales in the last year are said to have totaled close to Rs 30,000 crore.