Telangana Bars Oppose Excise Privilege Fee Hike, Call For Outlet Closures
HYDERABAD — The Telangana Bars and Restaurants Association has strongly opposed the State Excise department’s proposed revision of the privilege fee structure and called upon its members to shut their outlets in protest, citing poor business conditions across the state.
Under the existing rules, the Excise department collects a privilege fee from wine shops, bars, and restaurants based on their annual turnover. The levy was originally fixed at five times the annual turnover before being raised to seven times the total turnover. However, many bar and restaurant managements report that they barely reach three to four times their annual turnover, leaving the state government unable to collect the prescribed fee amounts under the current formula.
There are nearly 1,700 registered bars and restaurants operating across Telangana. Amid the revenue shortfall, authorities also noted complaints that some bars and restaurants sell liquor at rates higher than the maximum retail price, in contrast to conventional retail wine shops that sell at printed MRP.
To address non-payment, the Excise department has proposed shifting the collection point to the Point of Sale. Under the new mechanism, fees will be calculated directly on the volume of liquor stocks procured from the Telangana State Beverages Corporation Limited.
The revised structure is designed to function via slabs. For example, if a bar or restaurant purchases liquor stock worth Rs 33 lakh, the establishment would be required to remit a six per cent privilege fee on its licence fee. A formal note regarding the proposal was submitted to the State Cabinet, which has reportedly granted its approval. An official government order formalising the changes is expected to be issued shortly.
Rejecting the move, the Telangana Bars and Restaurants Association has demanded an immediate rollback of the proposal by the government. In addition to calling for shutdowns of member outlets, the association has also demanded that the state authorities shut down belt shops and permit rooms operating within the Greater Hyderabad Municipal Corporation limits.
