The Andhra Pradesh government has delivered an unexpected blow to alcohol consumers with a new policy set to take effect from October 16. Despite previous promises of providing quality liquor at lower prices, the government has reversed its stance, introducing a “Drugs Rehabilitation Cess” on alcohol. An official government order (GO) has been issued to this effect.
As per the order, a 2% cess will be imposed on the landed price of alcohol under the Drugs Rehabilitation initiative, with officials estimating that this could generate an additional revenue of Rs 100 crore. The government has notified that this cess will be implemented immediately.
Price Hike due to Round-Up Charges
With this new cess, prices are expected to rise further. For instance, if a bottle costs Rs 150.50, customers will now be charged Rs 160. Similarly, if the price is Rs 200.05, Rs 210 will be collected. Consumers are already facing price increases due to round-up charges, and the additional cess is likely to add to their burden.
The state recently accepted applications for liquor shop licenses, receiving an overwhelming response. With 3,396 liquor shops available, a total of 89,882 applications were submitted. Through application fees alone, the Andhra Pradesh government has earned Rs 1,797.64 crore.
It’s worth noting that the previous TDP-led coalition government had promised to sell a quarter bottle of liquor for just Rs 99 under its new alcohol policy.