Wine Merchants Association urge CM to cancel hike in license fee
Liquor sellers say this is the first time in history that the fee has been increased by 100 per cent and have sought its withdrawal
Bengaluru: The Excise Department has increased its revenue from liquor sales, but liquor sellers have appealed to the CM to withdraw this decision, opposing the government’s move to increase the license fee.
CM Siddaramaiah assured the delegation of the Federation of Wine Merchants Association that they will discuss and examine other demands, including license fee, reduction in fee on molasses, with the Excise and Finance Department.
A delegation led by Federation President S Guruswamy met Siddaramaiah at the Chief Minister’s residence ‘Kaveri’ on Monday. Minister RB Thimmapura, Chief Secretary Shalini Rajneesh, Additional Chief Secretary to the CM LK Ateek and senior officials of the Finance Department were present.
Liquor sellers had put forward several demands to the government, including the withdrawal of the license fee increase. The Karnataka Wine Merchants Association office bearers, who held discussions with Chief Minister Siddaramaiah, have submitted a three-page petition. In it, they have requested that the draft notification issued on May 15, increasing all types of license fees by 100 percent, be withdrawn and that the profit margin on retail liquor sales be increased to 20 percent.
In addition, licenses have increased by 31.3 percent in 9 years between 2016 and 2025. Liquor sales have increased by 26.90 percent and beer sales by 84 percent during the same period. The license fee should not be considered for excise revenue. This is the first time in history that the excise license fee has been increased by 100 percent. Liquor sellers have demanded that it be withdrawn.
A comprehensive discussion has been held with the CM about the difficulties of the industry. He has assured that a decision will be taken within a week. Therefore, the protest planned to be held on the 30th has been postponed. B Govindaraj Hegde, General Secretary, Karnataka Liquor Dealers Association, said that the next decision will be taken after the CM’s decision.
The number of CL 7 (hotels and boarding houses) licenses was 1,013 in 2016-2017. This has increased to 3,125 in 2024-2025. According to the information provided by the association, the monthly IML sales per shop have decreased. In 2016-2017, an average of 504.62 cartons were sold per month. But in 2024-2025, it has come down to 485.78 cartons.
This increase in license fees will burden the licensees. Also, the association said that the livelihood of thousands of people who rely on the retail liquor business will be affected. Excise revenue, which was Rs 591.33 crore in 2016-17, has increased to Rs 820 crore in 2024-25. However, due to increased expenses like rent, salaries and electricity rates, the profits of individual stores have come down, he said.
“A profit margin of 10 per cent is not enough. Therefore, a minimum profit of 20 per cent should be given on retail liquor sales,” the association has requested the government. This will make the business profitable, he said.
