AP misses a big opportunity to cover the revenue gap!

Andhra Pradesh government has missed a big opportunity to increase its revenues. Earlier the government had planned to cancel the existing system of liquor licenses and wanted to introduce government run liquor shops as in the case of Tamil Nadu. But later took back its proposal and only introduced 10% government run liquor shops in all the districts of the state.

These shops run by excise department staff are doing wonders. In June, the excise department had set a target of 384 Crore from liquor sales, but they managed to get about 800 Crore. This is the highest income ever earned in a month through VAT on liquor. So far the revenue till July from liquor reached 3370 Crore.

Introduction of government run shops is also helping consumers. As government shops are selling liquor on MRP rates, private shops are also forced to oblige the MRP rates. In some places to withstand the competition from government shops, private shops are even giving discounts on MRP rates. The state had missed a big oppurtunity to make money if all the shops in the state are run by the government as in Tamil Nadu.