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Spirits, revenue set to see a big lift in Goa RAJU NAYAK Send Feedback E-mail this story Print this story Posted online: Monday, August 15, 2005 at 0149 hours IST PANAJI, AUGUST 14: To lift the spirits of tourists to Goa, the Pratapsinh Rane government has lowered tax on liquor. And roadside kiosks will soon be allowed to sell beer and wine. The state last week slashed the tax on local drink from 20 to four per cent, and that of other India Made Foreign Liquor (IMFL) from 22 to 20 per cent. The move, State Finance Secretary Dharmendra Sharma said, was expected to result in more revenue as consumption would be higher. Advertisement Earlier, the Cabinet had approved the tax reduction saying that was the common mans drink. The tax cuts on IMFL was attributed to tourism needs. Sharma said that the taxes may further be lowered after gauging the results in the next few months. The latest move may give a boost to the faltering local industry. Brewers do not get enough cashew fruits to brew it, as land owners, afraid of the land-to-the-tiller policy, refuse to lease out their land. Cultivators in neighbouring Maharashtra reap the cashew nuts and usually bury the fruits as their transport to Goa is illegal. After the commercial tax came into force in Goa, the government started earning huge revenue from hotels. Earlier, they used to pay lower taxes at the first point, and sell the product to customers at an exorbitant rate. Now, the government was contemplating on reducing excise duty on liquor as the commercial tax itself could earn more revenue, said sources in the government. Earlier, following a writ petition by an NGO, the Goa Foundation, before the Goa bench of the Mumbai high court, the state government had invoked a provision in the Goa Excise Act, 1964, which prohibits advertising of liquor. Numerous hoardings along the highway and border posts, displaying liquor brands for the benefit of tired tourists, were removed overnight, ostensibly to prove the efficiency of the excise department. But two years down the line, the advertisements are back, and with a bang. 5,000 bars & counting Goa already has over 3,500 distilleries and bottling units, including those for the popular cashew and coconut Feni. It has over 5,000 bars and taverns and around 2,000 wholesale liquor shops. This small state of 1.2 million population earns around Rs 380 million through the sale of liquor and excise duty. There may be a further reduction in excise duty. The government is seeing it as a step to increase revenue, sources added.
