Hyderabad, August 16: The government seems to believe Telangana gifts like cheap rice is not enough to “lift the spirits” of the poor.
The new state has uncorked a waiver 100 percent VAT by cheap liquor to be “affordable” and check the hooch threat, with the chief minister Chandrasekhar Rao saying he was doing this for the “health of the people” and do “happy families”.
Thats not all. The state plans to reintroduce the spirit of the poor under a new policy from October. Saara purified arak or as it is called here, will be supplied by outlets approved by the state under the “T Mark” at a price of about 25 rupees for a bag of 180 ml. A similar package Gudumba (moonshine) – blamed for over 100 deaths each year – is sold for around 20 rupees.
The move comes at a time when a campaign to ban has intensified in Tamil Nadu and Kerala has slowed sales of alcoholic beverages. In neighboring Andhra liquor is taxed at high rates, while the untreated arak is banned altogether.
Another key element of the new policy of Telangana is that licenses for the sale of cheap liquor are issued by a group of 30-40 villages – called a mandal – with authorized to open as many outlets as they like in the operators. Previously, licenses were limited to a particular shot.
“The health of saving people (illicit liquor) is important. Families should be happy and lead a healthy life if cheap liquor is available at lower prices,” a statement from the chief minister’s office quoted him as saying Rao after the cabinet’s new policy on Tuesday cleared.
It has asked local breweries and distilleries to ramp up production of cheap liquor to meet the likely increase in demand.
Officials estimate the loss of income from the VAT exemption at Rs 1,200 crore – taxes account liquor 32 percent of state revenues – in 2015-16, but said they would be more than offset by the expected increase in resulting sales of cheap alcohol for the state.
Moreover, 15-20 percent duty slapped another Indian-made liquor (IML), further increasing the tax kitty, officials said.
“The new brand T will go to gudumba consume (illicit liquor) and prices are set so that they remain in scope ”, a special official, adding that illicit liquor worth Rs 500 million rupees was sold said each year in the state.
But some fear that the drink brand could flow through smugglers in the four states that share borders with Telangana.
Recently a special department committee visited Maharashtra to study the concept of “desi daru”. In the western state, desi daru – or Oranja – are sold through many means, including restaurants. The panel recommended the reintroduction of purified arak.
Already liberalized the sale of toddy in cities and towns, prohibited by previous governments led by undivided Andhra Congress and Telugu Desam Party.
