To compensate for loss, 50% hike in excise duty on liquor in J&K

Tribune News Service

Jammu, May 17

To compensate for the revenue loss due to the lockdown, the Jammu and Kashmir Government on Sunday levied 50 per cent additional retail excise duty on liquor — the biggest source of income for the UT. The additional excise duty will come into force from May 18.

• Also read: Valley’s economy dented by Rs 8,416 cr, says trade body

As per rough estimates, the UT government has suffered a whopping loss of Rs 125 crore in April due to the shutting of liquor shops in the lockdown.

Being one of the most flourishing businesses, women and politicians are the main stakeholders in the liquor shops and bars in various parts of the UT. Liquor consumption in J&K is increasing with every passing year and so is its contribution to the UT’s revenue.

According the excise department data, of the 220 liquor shops in the Jammu province, 52 licenses are in the name of women.

Women not only hold the licence of liquor shops, but some even possess the licence of distilleries.

Official document suggests that of the 17 distilleries in Jammu, women are partners in three.

A former Member of Parliament and 10 ex-legislators are involved in the liquor trade in J&K.

All 10 districts of the Jammu region have liquor shops, but in Kashmir, only Srinagar has four liqour shops. Leh district in the Ladakh region has two liqour shops.

Authorities to decide

As the government is losing Rs 125 crore monthly due to the closure of liquor shops, the authorities will take a decision on the opening of liquor shops to compensate the loss as early as possible.