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Under the new excise policy of Haryana for 2024-25, drinking alcohol in pubs and bars will become expensive from June. This policy will be implemented after the removal of the Model Code of Conduct applicable for the general elections. The main changes in the policy include changes in the base license fee and business hours. These changes will affect the economy of the bar and are sure to hit the pockets of the customers as well. According to the new policy, the license fee for bars that want to operate till 2 am will more than double. 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.
cost 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. While the permitted business hours have been reduced to 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 panic 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 all night from 8 am in Gurugram has also been increased. This will be a special license fee which is double the existing 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 for 2 pm window and After that Rs 5 lakh per person will be available. 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 likes to visit 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 to stay open past midnight is not a viable business for most restaurants. There are some nightclubs whose business model works on different parameters and they cannot afford such increased fees.
Excise duty on draft beer also increased
Rahul Singh said 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 consumed mainly 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 on the patio are turning to BYOB. “We pay heavy license fees, rent and taxes and adhere to several 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 that reducing business hours under regular licences will put pressure on margins as the cost of setting up in the city is very high. “Rent and operational cost of restaurants and bars in Gurgaon is very high. The increase in licence fee will make this business unviable for single restaurants and small businesses,” said the restaurant owner. He further said that big players will eventually remain in the business.