Hyderabad: After deciding to increase the price of beer and liquor, which is expected to come into effect in a day or two, the Telangana government is considering a proposal to double the licence fee for distilleries and breweries.
This would double the earnings for the exchequer to Rs 70 crore. The licence fee was last revised seven years ago in undivided Andhra Pradesh.
The TS government in its recent Budget for 2015-16 had fixed a revenue target of Rs 3,916 crore for the excise department. The initiatives to increase liquor prices, besides increasing licence fees for distilleries and breweries, are aimed at meeting the target.
At present, 16 distilleries in the state produce 1910.6 lakh proof litres of liquor. The government collects Re 1 as licence fees for every proof litre to earn Rs 19.18 crore.
Six breweries which produce beer pay the government Rs 13.25 crore as licence fee. Besides, 15 distilleries produce spirit and pay Rs 2.8 crore as licence fee.
