Officials of the Excise department this week caught a lorry filled with high-end liquor bottles being smuggled from Haryana into the state, blowing the lid off a racket that has been long suspected but never really investigated. The truck driver, who was briefly detained, revealed that the consignment was on behalf of the Haryana-based company and sought to evade questions by saying that it was meant for ‘customs’.
It marks, perhaps the first time, that someone has been caught attempting to smuggle such large quantities of liquor into the State. Goa, being a state in which excise duty is lower than its neighbouring states, usually experiences liquor being smuggled out of the state and into bordering states.
It explains why officials are lax in monitoring traffic moving into the state. However, now with the tax on high-end liquor being lower in some northern states like Haryana and Delhi, those with a keen eye on the business have been warning for a while that liquor is being smuggled into the state via various routes and sold in shops along the coastal belt at prices lower than the MRP.
While the Excise Department has claimed that this week's seizure was the first for this company in particular, it is hardly likely to be the first time such consignments are moving into the state. Liquor traders have long complained that high-end liquor is being sold in certain establishments especially along the coastal belt at prices well below the MRP -- something that can be possible only if it is being sourced from somewhere where the tax is cheaper. The real question is why did the Excise Department take so long to wake up to this reality?
That the prices of premium liquor in Goa have grown to be higher than those in some other states has been widely known. But now with long distances being covered by long haul vehicles fairly quickly, it was only a question of when, rather than whether someone would think of cashing in on the price difference. The consignment that was seized this week was itself worth an estimated Rs 75 lakh, and according to excise officials, if allowed to continue would have cost the state government around Rs 1 crore in lost revenue.
This seizure, however, is only the tip of the iceberg. Liquor is moving across borders via various modes of transport including road and rail which are cheaper as compared to other modes. It is the need of the hour for the Excise Department to pay closer attention to the new and emerging threat that Goa could be facing -- a threat that is quite unlike the enforcement that they are used to and one that can cost the state revenue and have a detrimental effect on Goan businesses.
For starters, the Excise Department will have to increase surveillance on vehicles entering the state. Goa Police's decision to install AI-based cameras at four border checkposts to monitor vehicles is a welcome step, but this has to be expedited. Also, there has to be a consistent monitoring of liquor outlets, especially along the coast, for consignments that are not appropriately labelled or those labelled as being for sale in another state. The question is whether the department will step up, or whether it would be business as usual.
