Yogesh Gupta, the Managing Director of BEVCO, has communicated with the Excise Minister expressing concerns about the ramifications of the proposed hike in the gallonage fee outlined in the budget. Gupta emphasized that failure to retract the increased fee would compel BEVCO to raise liquor prices in the state. The aim of the fee escalation, as proposed in the budget, is to generate an additional revenue of Rs 300 crore. Currently, the gallonage fee stands at 5 paise per liter, but the proposed increase would elevate it to Rs 10 per liter from the new financial year, potentially causing BEVCO to incur a substantial loss of Rs 300 crore.
In the past, BEVCO has faced financial challenges, experiencing losses when several outlets were forced to close, and popular brands became unavailable. However, after three years of consecutive losses, BEVCO managed to reverse the trend, recording a significant profit of Rs 124 crore in the previous financial year. Despite this progress, the corporation is now concerned about the potential negative impact of the proposed fee hike on its financial stability.
Presently, BEVCO pays an annual gallonage fee of Rs 1.25 crore. With the proposed increase, the corporation anticipates significant losses. BEVCO has urged the government to reconsider the fee hike to prevent adverse effects on its operations. Gupta also highlighted that the corporation’s current profits cover all employee salaries and operational expenses, and any reduction in profits would directly affect employee compensations and benefits. The Excise Department has also expressed reservations about the lack of thorough deliberation preceding the fee increase.
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