Under the new excise policy starting from next month in Haryana, the quota of country liquor across Gurugram may increase by fifteen percent. After finalizing the issue of increasing this quota across the state, now a report on increasing the quota in the district is being prepared. Apart from this, there will be less wine shops in rural areas as compared to before.
Haryana’s new excise policy for 2024-25 will make drinking alcohol expensive in pubs and bars from June. This policy will come into effect after the withdrawal of the Model Code of Conduct applicable for the general elections. The main changes to the policy include changes to the base license fee and business hours. These changes will affect the economy of the bar and will definitely hit the customers’ wallets. According to the new policy, the license fees will more than double for bars that want to operate till 2 am. Bar and restaurant owners have warned that the new policy will be detrimental to the city’s nightlife and spoil the evening mood at entertainment centres, which face constant competition from Delhi’s Aerocity.
Expenses will have to be doubled
In the new policy, the basic annual license fee for bars has been increased from Rs 16 lakh to Rs 20 lakh. Whereas the permitted business hours have been reduced from 2 am to midnight. Bars that want to remain open for business till 2 am will have to pay an additional Rs 20 lakh as license fee. Earlier, under the Haryana Liquor Policy, those running bars till 2 am had to pay only Rs 16 lakh. Now such bar owners will have to pay Rs 40 lakh. This rule has created a stir among bar operators.
70 lakhs will have to be paid instead of 36 lakhs
The fee for the rule that allows bars to remain open throughout the night from 8 am in Gurugram has also been increased. This will be a special license fee which is double the current fee. In 2023-24, bar owners who paid Rs 36 lakh (Rs 16 lakh basic fee and Rs 20 lakh extra) for the 8 pm window will get Rs 70 lakh this financial year (Rs 40 lakh till 2 pm and onwards Rs 5 lakh per hour) will have to be paid.
What did the association say?
The new policy will come into effect from June 12. Rahul Singh, founder of Beer Café and member of the National Restaurant Association of India, said that a large part of the city’s population works in the corporate sector and like to hang out at different places in the evening and late evening. He said that people come to restaurants and cafes to relax after working long hours with their family and friends. Reducing liquor serving hours and charging exorbitant fees for staying open past midnight is not a business fit for most restaurants. There are some nightclubs whose business model works on different parameters and they cannot afford such inflated fees.
Draft beer excise duty also increased
Rahul Singh said that excise duty on bottled beer has been reduced to promote healthy beverages through low alcohol beverages. But it is surprising why excise duty on draft beer has been increased when it is mainly consumed in restaurants and is not allowed in retail outlets or BYOB establishments, he said.
Rahul Singh said, ‘Delhi has increased the annual fee for restaurants by 10%, but Gurugram has increased the license fee by 25%, which may reduce investment and impact local employment.’
‘Compounds will get a boost’
Ankur Arora of Impromptu called the new fee policy regressive. He said this is dangerous for standalone restaurants. He said the rule would encourage restaurants, which have emerged as ‘BYOB’ in recent years. Customers who don’t want to go to patios are turning to BYOB. “We pay a huge license fee, rent and taxes and follow a number of norms, and we have to pay a premium for operating after midnight, whereas Ahte can operate till morning,” Arora said. ‘
‘Attack on small businessmen’
Another restaurant owner said reducing business hours under regular license would put pressure on margins as the cost of establishment is very high in the city. The restaurant owner said, ‘Rent and operating costs for restaurants and bars in Gurgaon are very high. The increase in license fees will make this business unviable for solo restaurants and small businesses. He further said that the big players will ultimately remain in business.
