State Loss Rs12K Crore

While Odisha is facing acute shortage of Resources to fund the Budget, it is likely to incur loss of revenue to the tune of Rs 1200 crore per annum as over 1100 liquor shops in the state closed down following the Supreme Court order banning liquor sale within 500 Meters of the Highways.

The 1167 liquor shops closed down from midnight of March 31 included 456 off shops, 205 restaurant On shops, 60 hotel On shops, 74 country spirit shops, 51 beer parlor On shops, 9 out still shops, 311 out still branch shops and one military canteen, official sources said.

"The State is likely to lose Rs 1200 crore per annum plus VAT if these 1167 liquor shops remain closed for the year," a senior official in the Department of Excise revealed.

While the State had set a target of earning above Rs 3300 crore as Excise Revenue in 2017-18 Financial Year, it will be receiving Rs.2100 Crore, which will be major blow to the State Exchequer.

Apart from revenue loss due to closure of liquor shops located within 500 meters from the NH and SH, over 3000 people will lose their jobs.

The liquor traders also said that they are unable to shift shops beyond 500 meters from the highways because the new locations come close to villages in many places
Odisha, reeling under cash crunch is staring at huge Excise revenue loss with shops and bars in hotels within 500 meters of the national highways shutting down as per Supreme Court order. 

In 2015-16 the collection of Excise revenue stood at Rs 2,546.94 crore. By January this year, the earning had reached Rs 2,111.23 crore. The Government had estimated to earn Rs 3,000 crore in 2016-17.
The worst-affected places are Bhubaneswar, Cuttack, Khurda, Rourkela, Sambalpur, Jharsuguda, Berhampur, Baripada and Balasore, where a large number of liquor outlets are located by the side of Highways.
In Bhubaneswar, a number of major hotels and restaurants are affected. Bars in 25 hotels and restaurants in Khurda district, that includes Bhubaneswar, were closed, said a senior official of the Department of Excise.

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