GCCI suggests modification of licence fee for beer manufacture

Panaji, Jan 24 (PTI) Goa government should modify itslicence fee on the manufacturing of beer, which is currentlycharged uniformly, the state''s apex commerce body has said.

Goa Chamber of Commerce and Industries (GCCI) in itspre-budget memorandum has said that the licence fees should becharged on the production capacity of the beer manufacturingunits.

"The licence fee of Rs five lakhs for manufacture of Beeris uniformly charged across the board to all the Breweriesirrespective of their size and sales volumes. It is requestedthat the licence fee may be charged depending upon sale volumeper annum," the memorandum reads.

The memorandum was submitted to Goa Chief MinisterDigambar Kamat, who also handles finance portfolio in thestate.

GCCI has suggested that for the minimum capacity of sixlakh cases per annum, licence fee of Rs 50,000 should becharged for those with high capacity of 24 lakh cases andabove, Rs five lakh should be charged.

"This will encourage setting up of small breweries inGoa," the memorandum reads.

The body has also recommended that bottling fee of Re0.30 per bottle of beer charged should be scrapped.

"There is no bottling fee on beer imported into the stateof Goa," GCCI has pointed out adding that there is an urgentneed to provide level playing field to all the parties byremoving the bottling fee.

"Any loss of revenue on account of removal of BottlingFees could be offset by increasing the excise duty by Re.0.50per bulk litre," the memorandum says.

GCCI has said that the levy of bottling fee also becomesa burden to local units particularly when the products areexported to other states.