Home / Business and Economy / Goa Liquor Industry Fights Green Tax Plan
Goa Liquor Industry Fights Green Tax Plan
22 Feb
Summary
- Industry bodies urge Goa to delay bottle deposit system implementation.
- Concerns raised over supply chain disruptions and potential revenue loss.
- Proposed system, set for April 2026, faces industry pushback.
Leading alcoholic beverage industry associations have formally requested the Goa government to defer the implementation of the proposed Deposit Refund System (DRS) for liquor bottles and cans. They argue the current timeline is unrealistic and could result in a substantial loss of over ₹100 crore in excise revenue for the state. The DRS, intended to boost recycling, is slated to begin on April 2, 2026.
Industry bodies like BAI, ISWAI, and CIABC support the environmental goals but highlight critical gaps in the scheme's operational framework. Key concerns include the lack of specifications for Unique Serial Identifiers, which prevents manufacturers from preparing essential inventory for the upcoming peak season. Reconfiguring production lines is estimated to reduce efficiency by up to 30%, potentially causing a shortfall of 10 to 15 lakh cases during peak demand.
Further challenges involve the inadequacy of the proposed 300 return vending machines to handle monthly recycling volumes and the impracticality of a flat ₹10 deposit on all bottles. The industry also seeks clarity on bottle recovery pricing, payment timelines, and commercial terms to mitigate supply chain uncertainty. While welcoming the formation of a joint task force, they stress the need for more time and suggest deferring implementation until after October.
