From May 1, alcohol in bars, hotels will likely cost more | Ranchi News
“The new regulations require bars and hotels to pay a minimum guaranteed income (MGR) to the excise service each year, failing which they will face penalties. This leaves the possibility for commercial entities to increase their tariff to cover their expenses,” said Achintya Saw, chairman of Jharkhand Rajya Khudra Sharab Vikreta Sangh.
The new regulations, which were notified after cabinet approval earlier this month, stipulate that licensed commercial bars, hotels and clubs (except three-star and above) will have to pay MGR on the basis of an assessment of their sales over the past three years. These assessments will be conducted by Deputy Commissioners in each district and will vary by facility.
Bar operators are also concerned about the rising cost of sourcing their shipments. “To date, licensed bars and hotels sourced their supplies from the State Beverage Company Limited (JSBCL) depot at wholesale rates. Now, with JSBCL dropping IMFL wholesale, sourcing must be done through the syndicate (third-party retailers) from May 1. This will affect spending, which will drive up rates after driving up the cost of luxury. said the manager of a hotel in the Station Road area of Ranchi.
“Five-star hotels are exempt from MGR under the new regulations. But overall, it will become difficult for hotels and bars as it would mean that these establishments will have to consume a minimum of inventory within a year. But alcohol consumption in Jharkhand goes down during festive seasons such as Navaratra, Chhath and other Hindu festivities,” said the sales manager of a five-star hotel.
Calls to the state director of excise, Gajendra Singh, went unanswered. Department sources said the MGR system was set up to make up for lost revenue, as many hotels and dhabas would buy liquor stocks from neighboring states to dodge their owed customs duties.