Hyderabad: In a significant development, the Telangana government has issued verbal orders reducing the prices of liquor in the state, officials said on Saturday. An official said that Rs 10 will be reduced on 90 ml and 180ml of liquor bottle, Rs 20 on 375 ml bottle and Rs 40 on 750 ml bottle regardless of brands of Indian Made Foreign Liquor (IMFL) and Foreign Liquor.
However, the prices of beer have remained unchanged. The new rates were effective from Friday. Official orders on the latest reduction will come out in a day or two. The government has given the flexibility to the traders to sell the stock stored in the liquor shops and depots till Thursday at the old prices. The price of liquor was increased for the first time in May last year.
It is expected that the reduction in the liquor prices will increase the sales by 10 percent. An official said that action will be taken against the officials who fail to achieve the target following slashing of the rates.
Changes in the renewal of bar licenses: The Telangana Excise Department has also made changes in the renewal of bar licenses. This decision will come into effect from next year as per officials. Usually, bar owners renew their licenses by paying a fee every year. Besides, the managers of the bars have been allowed to buy liquor in all quantities as against only full bottles so far.
Tax limit increased: The previous tax limit for bars has also been increased by the Telangana government. So far, there was no special excise duty for sale of liquor worth five times the license fee. A 14 percent tax had to be paid on the liquor sold beyond that. Henceforth no tax will be levied for liquor sold seven times the license fee.
