Restaurants, clubs seek relaxation on excise fees as liquor restrictions continue

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Restaurants, hotels, pubs and nightclubs are requesting refunds, waivers on excise fee on liquor since the licenses have been almost unnecessary since March, The Economic Times reported.

Restaurants and hotels had reopened in some states in June, after a gap of a little over two months due to the nationwide lockdown. Pubs and nightclubs remain closed during Unlock 3.0, amid a rise in COVID-19 cases throughout the country.

Anurag Katriar, president, National Restaurant Association of India (NRAI) said the Maharashtra government was asked to extend the tenure of the current licenses without any additional fee till March 31, 2021.

"Maharashtra has deferred payments till September, but people will surrender licenses. If I know I have only 4-5 months of limited business why would I pay a whole year's fee? In states such as Delhi, restaurants have paid license fee but have not been permitted to serve alcohol. It has become a major challenge in the state," Katriar told the publication.

In Delhi, annual liquor license fee ranges from Rs 9 lakh to Rs 45 lakh for some of the nightclubs, based on establishment size, seating and area, the report said.

Delhi has a six months cycle, which means that many restaurants paid the liquor license fee for April-September, The Economic Times reported.

"On an average, restaurants in Delhi pay Rs 12-13 lakh annually for the liquor license. In Delhi most of them have paid the annual fee in February itself and then the lockdown was imposed. So they have paid for the period, but they are not allowed to service. The authorities should either refund or give us an extension," said Manpreet Singh, owner of the Zen restaurant in Connaught Place told the paper.