Daman & Diu face excise loss of Rs 65 crore

SURAT: The watering holes of Daman and Diu are staring at huge losses in the revenue income from the liquor licences following the Supreme Court order banning the sale of liquor within 500 m from the state and national highways starting April 1.
The excise department of Daman & Diu has pegged the loss to the tune of over Rs 65 crore per annum in the excise revenue following the order
The liquor licences of around 160 wine shops, restaurants and hotels serving liquor in Daman and Diu have been cancelled starting from April 1.Around 100 licenses are in Diu and that Daman has around 60 licenses being cancelled by the administration.
Last year, the excise department had earned revenue from the sale of liquor at Rs 303 crore in 2015-16, which was up 30% rise compared to Rs 219 crore in the previous year.
With Daman sharing border with Gujarat, mainly Valsad and Surat, the department had a windfall from prohibition in the neighbouring state. Excise officials said that majority of the customers visiting Daman are from Surat, who contribute immensely to the UT’s coffers.
Official sources said that the excise revenue from the last one decade was at the average of Rs 175 crore per annum. It was in 2014, the excise revenue increased to Rs 219 crore.
Liquor in Daman is sold from around 60 wine shops, 260 bars and restaurants and 60 hotels. There are eight distilleries and one brewery in Daman & Diu and 50 wholesalers of liquor.
“Daman and Diu’s excise revenue has been robust from all these years. After the Supreme Court order, we have cancelled 160 liquor licenses with effect from April 1. This will result in a loss of over Rs 65 crore,” said excise officer of Daman and Diu, LM Vaghela
President of Daman Hotel and Bar Association (DHBA), Gopal Tandel said, “Not only Daman and Diu is staring at excise revenue losses, but it is going to be a huge problem for the 160 liquor license holders, mostly the restaurant owners. Many people have been rendered jobless due to the Supreme Court order”