Hyderabad: The Telangana state government has extended the licences of the existing liquor outlets for a period of one month from October. Revenue special chief secretary Somesh Kumar issued the orders to this effect on Wednesday.
In the order, he said that after careful examination of the circumstances reported by the commissioner of prohibition and excise, the government decided to extend the licences.
He also said in the order that licence holders must pay proportionate annual shop excise tax for the extended period at the rate of eight per cent plus applicable VAT.
The existing excise policy will expire by the end of this month and the new excise policy will come into force from October 1. But, since the state government was unable to finalise the new excise policy, it has decided to extend the existing licence for one month.
Meanwhile, the licence holders are opposing the new conditions on tax payment. According to current conditions, the licence holders has to pay turnover tax plus VAT if the sales cross seven times of the licence fee. But now in the order, extending the licence period, the government says that they have to pay turnover tax and VAT immediately after lifting the liquor from depots.
The licence holders said with the new order, they would have to pay almost double the licence fee.
