Odisha, which has imposed a Covid cess of about 50% on liquor, witnessed an average 59% decline in sales in May and June.
It reported a decline of 66% sale in May and 51% in June compared to the corresponding months last year, according to a report of the Confederation of Indian Alcoholic Beverage Companies (CIABC).
The report also referred to imposition of Covid cess and related decline in liquor sale in some other States. While Odisha and two Union Territories imposed Covid cess of over 50%, six States imposed a cess between 15%-50% and 14 States up to 15%.
Across the country, there was a decline of 25% and 15%, respectively, in May and June, said the report.
The CIABC hopes the State Governments would take measures on the basis of its data to bring tax increases down to sustainable levels, ideally below 10%. If the cess is reduced, consumers would get relief and the Governments would collect more revenue, it views.
