Estimating the losses of liquor outlets in Karnataka during the lockdown to be about ₹1,100 crore, the Federation of Wine Merchants Associations, Karnataka, has sought concessions in licence fees, as the renewal is around the corner.
While the federation has urged the government to adjust one month’s closure in April with the licence fees to be remitted for 2020-2021, it has also sought for a staggered payment of the licence fee instead of an upfront payment currently in vogue.
For nearly 10,500 liquor outlets that fall in different category of licences, the last date for submission of application for licence renewal is May 30 and the fresh licences will come into effect from July 1.
The closure of the liquor outlets during the lockdown ranged from 56 days for 247 clubs to 40 days for 3,946 wine stores. As many as 3,594 bars and restaurants, 1,342 bars in hotels, with board and lodging, were shut for 49 days.
A calculation by the federations, in its memorandum to Chief Minister B.S. Yediyurappa recently, said the licence fee per day ranges from ₹631 in one of the CL 4 categories to ₹2,685 per day in one of CL 7 categories, and stated that the total loss towards the licence fee owing to closure amounted to ₹70 crore. “We have made a plea before the government that when it collects the fee now for 2020-2021, the fee amount should be reduced depending on the license and the number of days the outlets were closed or for a month,” a senior office bearer said.
