Ranchi: Liquor traders in the state are apprehending that the new Jharkhand Excise Hotel, Restaurants, Bar and Club (Licensing and Operation) Regulations of 2022 will compel hotels, mid level and high-end hotels, commercial clubs and bars to increase their tariff from May 1 after it is implemented.

“The new regulations mandate that bars and hotels have to shell out a minimum guarantee revenue (MGR) to the excise department each year failing which they will be subjected to penalties. This leaves the scope of the commercial entities to increase their tariff to cover their expenses,” Achintya Saw, the president of Jharkhand Rajya Khudra Sharab Vikreta Sangh, said.

The new regulations, which were notified after cabinet nod earlier this month, state that licensed bars, hotels, commercial clubs (except three star and above) will have to pay the MGR based on an evaluation of their sales in the past three years. These evaluations will be conducted by the deputy commissioners of each district and will vary in case of each establishment.

Bar operators are also worried about increased procurement costs for their consignments. “To this day, licensed bars and hotels procured their stocks from the state beverage corporation limited’s (JSBCL) depot on wholesale rates. Now, with JSBCL giving up the wholesale of IMFL, procurement has to be made through the syndicate (third party retail sellers) from May 1. This will have a bearing on expenses, which will lead to a rise in tariff after compounding the luxury cost,” said the manager of a hotel located in the Station Road area in Ranchi.

“Five star hotels are exempted from the MGR as per the new regulations. But on a whole, it will become difficult for hotels and bars because it would mean that these establishments will have to consume a minimum amount of stocks within a year. But liquor consumption in Jharkhand dips during festive seasons such as Navaratra, Chhath and other Hindu festivities,” the sales manager of a five star hotel said.

Calls to state excise director Gajendra Singh remained unanswered. Department sources said the MGR system was put in place to plug revenue losses as many hotels and dhabas would procure liquor stocks from neighbouring states to dodge their payable duty fees.