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Restaurateurs demand waiver on liquor licence fee for lockdown period

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The restaurant owners in the Capital have requested the Delhi government to waive the liquor licence fee for the lockdown period stating that their alcohol sales have been negligible so far. Restaurants were allowed to serve liquor just a month back and bars were allowed to operate from September 9 in the city on a trial basis.

The National Restaurant Association of India (NRAI) has given multiple representations to the excise department and deputy chief minister Manish Sisodia. The association has now written to Delhi chief minister Arvind Kejriwal in this regard, as the last date to pay the second instalment of the liquor licence fee is September 29, 2020.

The annual liquor licence fee, which is charged as per the seating capacity of a restaurant, varies between Rs 9.25 lakh to Rs 22.41 lakh. The fee has to be paid in advance before the start of the financial year. It can also be paid in two instalments: one before the start of the financial year and the second half before September 29. For instance, the licence fee for financial year 2020-21 was paid by restaurants, either full or partially, by February 28, 2020.

While restaurants were allowed to open from June 8 with only 50% seating capacity, the permission to serve liquor on tables was granted much later in mid-August. Bars in the city were allowed to operate only from September 9.

A Delhi government spokesperson did not comment on the demand by restaurant owners

Manpreet Singh, owner of Zen restaurant in Connaught Place and treasurer of NRAI, said, “We want the government to waive the licence fee for the lockdown period and adjust it for the months when the permission to sell liquor was given to us. While the licence fee was paid for this financial year, sale of liquor started only recently. Restaurants are already bleeding money as we are operating on 50% seating capacity and turnout is also low right now. The government should support us.”

According to NRAI, most restaurants pay the licence fee in installments. Prakul Kumar, secretary general of NRAI, said, “There is panic and confusion among restaurateurs as they have just a week before payment for the second instalment becomes due and there is no clarity on whether the fees will be adjusted or not. Moreover, there is uncertainty whether bars will be allowed to operate or not in the future, as the permission was given only on a trial basis. We have sent representation to the Delhi chief minister in this regard. We requested the government to address this issue at the earliest.”

The association has also held several meetings with the excise department and met Sisodia recently to take up the issue.

With expired beers and other alcohol stock still lying in their government-authorised storage spaces, NRAI has also requested the government to grant them permission for its disposal. “We need space to keep the new stock of liquor. A lot of liquor has expired and we have to dispose it,” said Kumar.

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