Maha Govt Cuts License Fees for Permit Rooms, Beer Shops, Clubs by 30 to 50%

The Maharashtra Cabinet has formally approved a reduction in the Excise Department’s fee on permit rooms, clubs, and beer shops by up to 50%. The cabinet took this step to promote the state’s hospitality and tourism industry while also helping clubs, beer shops, and permit rooms struck by the lockdown and the subsequent loss of business. 

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Additionally, the 15% increase in license fees announced for 2019-20 has been withdrawn entirely for 2020-21. The state will lose nearly ₹361 crores of revenue due to these reductions. 

The government has slashed license fees on clubs and permit rooms by 50% while beer and wine shops will see a 30% reduction in license fees. Businesses that have paid the renewal fees recently will see the deductions reflect during the next renewal.   

Officials said that the decision to slash license fees would apply to around 5,000 beer shops, 15,000 permit rooms, 47 clubs, and 60 wine shops across the state. Nearly 1,000 toddy shops of the state will see their license fees waived for June, July and August while the government has also withdrawn a previous 6% fee increase for the year of 2020-21. It’s worth pointing out that since the excess amount is adjusted during the next renewal, businesses will not receive a refund.

Read - Alcohol Consumption Dipped Between April-November 2020, Excise Dept Data Shows

In the 2019-20 period, the State Excise Department generated revenues of ₹15,429 crores while collecting ₹909.10 crores in net excise license renewal fees. Until now, a total of ₹9,057 crores has been collected compared to the ₹11,111 crores collected during the same period last year. For the 2020-21 cycle, the State Government expects to collect excise revenue of ₹19,225 crores.  

The reduction in license fees and other charges are expected to hit the state. These cuts are still deemed necessary given the massive toll taken by businesses all across Maharashtra due to the COVID-19 pandemic. 

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