As the Telangana government has recently hiked the bar license fee from Rs. 35 lakh to Rs. 40 lakh in the cities, the pubs have decided to pass the burden on to consumers. In the districts, the license fee has been increased from Rs 30 lakh to Rs. 35 lakh.
The new policy is expected to bring more pubs in the city. As the government has reduced the population criterion for the issuance of a bar license, the number is expected to go up from 547 to 600. Earlier for every 13000 population, a pub was allowed in the GHMC limits and as per new policy, it will be allowed for every 11000 population itself.
On the other side, the government also decided to reduce VAT from 150% to 70%, and even excise duty has been marginally cut, which now resulted into reduction of wine prices by 30 to 35% in the state.
"It is a balanced policy and we have come up with it considering all factors, including revenue generation as well as changing lifestyle in a city that is emerging as a global destination," said excise commissioner R V Chandravadan.