40 pubs shut down in state, No liquor on May 21st?

BENGALURU: Thousands of distilleries and liquor shops in Karnataka have called for a strike on May 21 following repeated hikes in excise duty and license fees. Liquor store owners complain of rising excise duty and license fees for the past two years.

As a sign of protest, shopkeepers will stop purchasing liquor from government depots.

The government issued a draft notification to double the license fee on May 15. Organizations such as the Karnataka Wine Merchants Association, the National Restaurant Association of India, and the Karnataka Brewery and Distilleries Association have come out in protest against the government's decision.

All liquor shops in the state will be closed from Wednesday. It is reported that more than 5,000 of the 12,000 licensed liquor shops in Karnataka will participate in the strike.

According to the draft notification to double the license fee, the annual license fee has been increased from Rs 27 lakh to Rs 54 lakh. For distilleries and warehouses, it has been increased from Rs 45 lakh to Rs 90 lakh. The new fees will come into effect from July 1. Due to the repeated hikes, many liquor shops are on the verge of closure and consumers will have to pay higher prices.

Excise officials say that the fee was increased this year to make up for the shortfalls of the previous financial year. The revenue target for the financial year 2024-25 was 38,525 crores. But only 35,530 crores could be collected.

Retailers said the new license fee hike will hit budget segment sales and small outlets. Over 40 pubs in Bengaluru closed last year due to rising costs and a decline in customer numbers.