Foreign liquor retailers in Bengal have urged the state government to increase the trade margin on alcohol sales to 10 per cent of MRP, withdraw special-purpose fees imposed during the COVID-19 period and review the state's liquor distribution mechanism.
The demands were raised by the Society for the Welfare of Bengal Foreign Liquor Licences, an association representing more than 1,000 licensed foreign liquor (FL) shops across the state, which said rising operational and compliance costs had made the current business model unsustainable.
"We demand a margin of 10 per cent. It has come down to 3.5-4 per cent, which is not sustainable," the society's secretary, Bijon Patra, told reporters here.
According to a representation submitted to the excise commissioner, the association has sought rationalisation of trade margins in view of increasing business costs.
It has also demanded the removal of special-purpose fees introduced during the pandemic and a shift to a system in which the state government directly manages liquor distribution instead of the existing distributor-led arrangement.
Patra said the industry body was seeking reforms that would improve the business environment for licensed FL shops and ensure their long-term sustainability.
The association also called for stronger action against illicit liquor, decentralisation of licensing and administrative processes, simplification of regulatory procedures and greater transparency in the implementation of excise policies.
"Licensed foreign liquor trade is an important stakeholder in Bengal's economy and revenue ecosystem. We believe there is significant scope for policy reforms that can benefit consumers, strengthen compliance, improve business sustainability and enhance government revenues," Patra said.
Problems in the sector began after the erstwhile TMC government allegedly replaced the traditional distributor-led model with a state-controlled distribution system.
Patra, however, declined to comment on whether the new system was prone to corruption.
The association said it was willing to work with the state government and the excise department to develop practical solutions that support both regulatory objectives and business growth.