State Government Plans to Increase Liquor Prices to Boost Revenue
The State Government of Hyderabad is considering raising liquor prices, including beer, starting next month. This move aims to increase State-Owned Tax Revenues (SOTR) amidst a recent decline in revenue collections caused by various factors.
Chief Minister A Revanth Reddy has directed the Excise and Prohibition Department to explore ways to generate more income from liquor sales. Additionally, breweries have been requesting an increase in beer prices to improve their profit margins, a proposal that has been under review for some time. According to sources, the prices of premium brands of whisky, beer, and wine are likely to increase by 10% to 15%, with Indian Made Foreign Liquor (IMFL) prices also set to rise soon.
Officials from the Excise Department are aiming to generate an additional Rs 500 crore in revenue from liquor sales each month during this financial year. The government has already set a target of Rs 25,000 crore from liquor sales, and this extra income is expected to help address ongoing financial challenges.
The state witnessed strong liquor sales during festivals like Dussehra, Diwali, and year-end celebrations last year. Officials believe that increasing liquor prices will further boost revenue and help the government meet its financial goals by the end of March. Currently, there are 2,260 liquor shops and 1,171 bars and restaurants operating in the state.
