Liquor makers appeal Delhi govt to waive licence fee for 3-month extension

Liquor makers have asked the Delhi government to waive various excise fees imposed on the industry during the lockdown period.

Though the Delhi government has extended the licence for another three months till June 30 but has asked liquor firms to pay licence charges on pro rata basis in advance.

According to the Confederation of Indian Alcoholic Beverage Companies (CIABC), while majority of state governments have waived fee and other licence charges while extension, the Delhi government has asked for payment of licence fees, despite knowing the fact that the entire business has been shut down due to the lockdown.

When all wholesale and retail business is completely shut in Delhi since 22 March due to Covid-19 lockdown ordered by the government, all operations are suspended and there are no sales. At the same time, as advised by the government, companies are paying salaries to staff.

"Companies are under massive financial burden. In such a scenario we cannot pay renewal fees for a period when there is no business," CIABC Director General Vinod Giri said.

In a letter to the Delhi Excise Commissioner, the apex body of the Indian Alcoholic Beverage Industry has stated that though the Delhi Excise Department has allowed extension of existing L1/L1-F/L2 Licenses for 2019-20 till 30 June, 2020, but has sought three-month advance payment of license fees, Label Registration Fees, BWH (bonded ware house) fees etc as applicable to them on pro rata basis.

The association has also suggested that the government may consider this payment as an advance to be adjusted against license fees liabilities of the license holders for the period after the lockdown is lifted.

The alcoholic beverage industry, which is a major revenue generator for the government and employs lakhs, cannot afford to bear this burden. We have urged the government to consider payments which the industry is making as an advance to be adjusted against license fees liabilities of the license holders for the period after the lockdown is lifted, he added.

Earlier, the association has asked the government to consider online sales of liquor in the lockdown period.