Closures hit alcohol manufacturers; govt faces loss of Rs 700 cr a day

The ban on liquor sales across the board is hitting the government to the tune of Rs 700 crore a day in terms of lost revenue, industry representatives have affirmed.

The central government earns Rs 2.48 trillion annually from excise duty revenues on alcohol across India, which ranges from as low as 75 per cent in Goa to 300 per cent in Maharashtra.

Excise duty on liquor is an important revenue source for states, which are not in a strong position financially at present. This week, they raised bonds from the market at 150-200 basis points (bps) higher than government securities, compared