Odisha News, Odisha Latest news, Odisha Daily - OrissaPOST
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
No Result
View All Result
OrissaPOST - Odisha Latest news, English Daily -
No Result
View All Result

Corona cess: These are the states where liquor sales declined up to 60% in May-June

PTI
Updated: August 3rd, 2020, 07:50 IST
in Business
0
excise revenue in odisha
Share on FacebookShare on TwitterShare on WhatsAppShare on Linkedin

New Delhi: States which imposed more than 50 per cent COVID-cess on liquor after the resumption of retail trade post lockdown witnessed an average 59 per cent decline in sales in May and June due to higher tariffs, a report by trade association CIABC claimed.

States as Delhi, Andhra Pradesh, Odisha, J&K and Pudducherry, which had imposed a COVID-cess of 50 per cent and above reported a decline of 66 per cent in May and 51 per cent in June compared to the year-ago period, the report by Confederation of Indian Alcoholic Beverage Companies (CIABC) said.

Also Read

Putin

Russia to buy Indian farm goods, medicines to balance trade

4 hours ago

Banks to clear cheques same day from Oct 4 under RBI rules

6 hours ago

While, states as Arunachal Pradesh, Meghalaya, Rajasthan, West Bengal, Kerala and Jharkhand, which had imposed a COVID-cess between 15-50 per cent reported an average decline of 34 per cent in sales, the report stated.

However, states where up to 15 per cent additional cess was imposed, witnessed only 16 per cent decline in May and June, which includes Uttarakhand, UP, Telangana, Karnataka, Chhattisgarh, Haryana, Tamil Nadu, Maharashtra, Assam, Chandigarh, Madhya Pradesh, Goa and Punjab.

While pan India, there was a decline of 25 per cent and 15 per cent respectively in May and June this year, totalling to 4.37 crore cases. It was 5.87 crore cases in 2019 in the same month.

After the retail sales of liquor were resumed after six weeks of closure in May, several state governments facing shortage of financial resources imposed a higher tax on alcoholic beverages.

“However, it has repeatedly pointed out that taxation, beyond a point, becomes counterproductive,” said CIABC.
States, which were lower-taxed, have a stronger sales recovery in the month of June.

“The idea of various state governments to quickly make up for revenue deficit due to lockdown through heavy taxation on sale of liquor has backfired. Latest data shows that states which imposed heavy Corona cess on liquor saw sale of booze going down by more than half during relaxation in lockdown,” it added.

According to CIABC Director General Vinod Giri: “Liquor industry contributes around Rs 2.5 lakh crore in tax revenues to state governments, but this fiscal this collection is likely to see a fall and sales are going to see a downfall of 25-30 per cent”.

High taxation in some states has led to steep fall in sale of liquor, while the delay by the government in opening bars and restaurants, which account for up to 10 per cent of liquor sales, will further aggravate the situation, he added.

“This in effect conveys that tax increases most likely did not lead to an increase in tax collection in absolute terms. This clearly indicates that levying of hefty Corona tax did not lead to an increase in total tax collection. In fact, the trend in sales recovery in June, when unlocking began, was stronger in states that imposed lower tax increases,” he said.

He also pointed out that the liquor industry was subjected to a longer lockdown compared to most other consumer products.

It was permitted to restart trade by the central government after six weeks of total closure. Many state governments, Odisha, Punjab, Kerala, restricted sale from retail outlets due to local lockdowns even after it was permitted by the central government.

Further, bars, restaurants and other on-premise shops which contribute up to 10 per cent of liquor and much more of the beer and wines sales have remained shut.

“We hope that the governments take note of the data and bring tax increases down to moderate and sustainable levels, ideally below 10 per cent. That will not only bring relief to consumers, it will also help the industry sell more and the government collect more taxes. The governments should also consider the impact of price increase on sales before applying tax increases in annual excise policy as well,” Giri added.

CIABC is an association of the Indian alcoholic beverage industry.

 

PTI

Tags: corona cessCoronavirusCOVID-19Liquor salesLockdown
ShareTweetSendShare
Suggest A Correction

Enter your email to get our daily news in your inbox.

Advertisement

 

OrissaPOST epaper Sunday POST OrissaPOST epaper

Click Here: Plastic Free Odisha

#MyPaperBagChallenge

Shreyanshu Bal

December 12, 2019
#MyPaperBagChallenge

Rajashree Manasa Mohanty

December 12, 2019
#MyPaperBagChallenge

Rajashree Pravati Mohanty

December 12, 2019
#MyPaperBagChallenge

Sisirkumar Maharana

December 12, 2019
#MyPaperBagChallenge

Jyotshna Mayee Pattnaik

December 12, 2019
#MyPaperBagChallenge

Surya Sidhant Rath

December 12, 2019
#MyPaperBagChallenge

Arya Ayushman

December 12, 2019
#MyPaperBagChallenge

Faiza Firdous

December 12, 2019
#MyPaperBagChallenge

Aishwarya Ranjan Mohanty

December 12, 2019
#MyPaperBagChallenge

Spinoj Pattnaik

December 12, 2019
#MyPaperBagChallenge

Mandakini Dakua

December 12, 2019
#MyPaperBagChallenge

Geetanjali Patro

December 12, 2019
#MyPaperBagChallenge

Pratyasharani Ghibela

December 12, 2019
#MyPaperBagChallenge

Subhajyoti Mohanty

December 12, 2019
#MyPaperBagChallenge

Akriti Negi

December 12, 2019
#MyPaperBagChallenge

Subhajyoti Mohanty

December 12, 2019
#MyPaperBagChallenge

Nishikant Rout

December 12, 2019
#MyPaperBagChallenge

Vandana Singh

December 12, 2019
#MyPaperBagChallenge

Sarfraz Ahmad

December 12, 2019
#MyPaperBagChallenge

Tabish Maaz

December 12, 2019
#MyPaperBagChallenge

Ankita Balabantray

December 12, 2019
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
#MyPaperBagChallenge

Dibya Ranjan Das

December 12, 2019
#MyPaperBagChallenge

Sibarama Khotei

December 12, 2019
#MyPaperBagChallenge

Debasis Mohanty

December 12, 2019
#MyPaperBagChallenge

Akshaya Kumar Dash

December 12, 2019
#MyPaperBagChallenge

Manas Samanta

December 12, 2019
#MyPaperBagChallenge

Ipsita

December 12, 2019
#MyPaperBagChallenge

Anshuman Sahoo

December 12, 2019
#MyPaperBagChallenge

Sitakanta Mohanty

December 12, 2019
#MyPaperBagChallenge

Anasuya Sahoo

December 12, 2019

Archives

Editorial

French Justice

ormer President Nicolas Sarkozy
October 1, 2025

At a time when many people across the globe holding high offices or having money power and political clout are...

Read moreDetails

U-Turn On Ukraine

Putin
September 30, 2025

During the past fortnight, European states have reported a spurt in incursions into their airspace, the latest such instance being...

Read moreDetails

Angry Ladakh

Ladakh
September 29, 2025

Bordered by China to the east and Pakistan to the west, Ladakh holds immense strategic value for India. Yet, more...

Read moreDetails

Diplomatic Drift

Rights & Restrictions: AAKAR PATEL
September 28, 2025

“God moves in mysterious ways his wonders to perform,” so goes a hymn I read in school. Or perhaps it...

Read moreDetails
  • Home
  • State
  • Metro
  • National
  • International
  • Business
  • Editorial
  • Opinion
  • Sports
  • About Us
  • Advertise
  • Contact Us
  • Jobs
Developed By Ratna Technology

© 2025 All rights Reserved by OrissaPOST

  • News in Odia
  • Orissa POST Epaper
  • Video
  • Home
  • Trending
  • Metro
  • State
  • Odisha Special
  • National
  • International
  • Sports
  • Business
  • Editorial
  • Entertainment
  • Horoscope
  • Careers
  • Feature
  • Today’s Pic
  • Opinion
  • Sci-Tech
  • About Us
  • Contact Us
  • Jobs

© 2025 All rights Reserved by OrissaPOST

    • News in Odia
    • Orissa POST Epaper
    • Video
    • Home
    • Trending
    • Metro
    • State
    • Odisha Special
    • National
    • International
    • Sports
    • Business
    • Editorial
    • Entertainment
    • Horoscope
    • Careers
    • Feature
    • Today’s Pic
    • Opinion
    • Sci-Tech
    • About Us
    • Contact Us
    • Jobs

    © 2025 All rights Reserved by OrissaPOST