Industry plans shutdown; Final call after meeting with Chief Minister on May 21

Mysuru: After repeated hikes in excise duties and licence fees over the past two years, the Congress-led State Government on Friday issued a preliminary gazette notification proposing up to a 100 percent increase in licence fees for distilleries, breweries and alcohol-selling establishments across Karnataka.

The revised fees are slated to take effect from July 1.

The notification has invited objections from stakeholders, who must submit their responses to the Principal Secretary of the Finance Department at Vidhana Soudha within seven days. The Government aims to generate an additional Rs. 600 crore annually through this revision.

In protest, thousands of distilleries and liquor outlets across Karnataka are planning a strike and demonstration on May 20, followed by a complete industry shutdown on May 21. Liquor store owners have also decided to suspend liquor purchases from Government depots as a                                           mark of protest.

Mysuru District Liquor Merchants’ Association President S. Guruswamy told Star of Mysore this morning that Chief Minister Siddaramaiah has convened a meeting with representatives of the Liquor Merchants Federation, various associations, and stockists to deliberate on the proposed hike. “We will await the outcome of the Chief Minister’s meeting. If the exorbitant hike is not withdrawn, we will go on strike,” he said.

This hike impacts all 13,567 excise licences currently issued in Karnataka, which include 3,999 liquor retail outlets, 3,642 CL-9 bar and restaurant licences, 3,030 CL-7 boarding licences, and 303 CL-4 club licences.

 As per the gazette notification, the annual licence renewal fee of breweries has been hiked to Rs. 54 lakh from the existing Rs. 27 lakh and that of the distilleries to Rs. 90 lakh from Rs. 45 lakh. Similarly, the annual licence renewal fee of bottling units of distilleries and breweries has been increased from Rs. 1 lakh to Rs. 2 lakh.

In urban municipal zones with populations over 20 lakh, the licence renewal fee has increased to Rs. 12 lakh, and in other municipal areas, it has gone up to Rs. 10 lakh. Smaller towns and panchayat areas will now pay Rs. 8 lakh.

The annual lease amount of retail vendors of bulk beer has also been hiked to Rs. 3 lakh and that of clubs and bar and restaurants serving liquor to Rs 2 lakh. Even the licence transfer fee for selling Indian liquor or foreign liquor, or both, has been hiked from the existing  twice the licence fee to three times the fee.

The revised excise licence fee structure has seen steep hikes across all major categories. For instance, the CL-9 licence for bars and restaurants has increased from Rs. 8.62 lakh to Rs. 17.25 lakh, marking a hike of Rs 8.63 lakh.

Similarly, the CL-7 boarding licence now costs Rs. 19.55 lakh, up from Rs. 9.75 lakh, reflecting a rise of Rs. 9.8 lakh. The CL-5 retail outlet licence fee has doubled from Rs. 11.5 lakh to Rs. 23 lakh.

The changes will be implemented by making amendments to a number of Acts including Karnataka Excise (Bottling of Liquor) Rules, 1967, Karnataka Excise (Brewery) Rules, 1967, Karnataka Excise (Lease of the Right of Retail Vend of Beer) Rules, 1976,  Karnataka Excise (General Conditions of Licences) Rules, 1967, and Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968.

Liquor licence fees surge

Breweries: Annual licence renewal fee increased from Rs. 27 lakh to Rs. 54 lakh.

Distilleries: Annual licence renewal fee raised from Rs. 45 lakh to Rs. 90 lakh.

Bottling units (distilleries and breweries): Fee doubled from Rs. 1 lakh to Rs. 2 lakh.

Retail vendors (bulk beer): Annual lease amount hiked to Rs. 3 lakh.

CL-4 Clubs, bars & restaurants (liquor-serving): Annual lease amount raised to Rs. 2 lakh.

Licence transfer fee: Increased from twice the licence fee to three times.

CL-9 licence (bars and restaurants): Fee surged from Rs. 8.62 lakh to Rs. 17.25 lakh.

CL-7 boarding licence: Now costs Rs. 19.55 lakh, up from Rs. 9.75 lakh.

CL-5 retail outlet licence: Doubled from Rs. 11.5 lakh to Rs. 23 lakh.