CIABC calls for reduction in 70 pc corona tax on alcoholic beverages in Delhi
Jun 03, 2020
New Delhi [India], June 3 : The Confederation of Indian Alcoholic Beverage Companies (CIABC) has written to Delhi Chief Minister Arvind Kejriwal demanding a reduction of 70 per cent Corona pandemic tax on alcoholic beverages to a 'realistic and sustainable level'.
"Despite initial surge, the sale of liquor has fallen drastically in Delhi by 58 per cent on a year-ago basis. On the other hand, sales in neighbouring states seem to be bouncing back in sharp contrast to Delhi. It may be noted that both Uttar Pradesh and Haryana have effected a tax increase of not more than 10 to 15 per cent," said CIABC in the letter.
The confederation said the national capital city has porous borders and liquor prices in neighbouring states are much lower, thus creating scope for unlawful smuggling and depriving the Delhi Government of its legitimate tax revenues.
Liquor distribution and retailing employ about 13,000 people in Delhi. The decline in sales is bound to lead to some shops shutting down and lay-offs at the wholesale and retail level. Even at best estimate, 3,000 to 4,000 people may end up losing their livelihood, said CIABC.
At pan-India level, the Indian Made Foreign Liquors (IMFL) industry contributes over Rs one lakh crore in taxes every year, supports the livelihood of 35 lakh farmers directly provides direct employment to thousands of people in manufacturing.
It also employs over 10 lakh people in the distribution chain and supports hundreds of ancillary industries in glass, tin, plastic and paper with a turnover of Rs 6,000 crore to 7,000 crore.
