HYDERABAD: Wining and dining in city bars and elsewhere in the state has become an expensive affair with the state government hiking bar licence fee from Rs 35 lakh to Rs 40 lakh and pub owners deciding to pass the burden on to consumers. The licence fee has been increased from Rs 30 lakh to Rs. 35 lakh in districts.The government, after a three-month delay , announced the new bar policy for the current year late on Saturday night raising the licence fee.As a result, a drink in a pub will now cost more since the owner has to pay 15 per cent service tax on the licence fee.The new policy also paves the way for more number of pubs in the city . The number is set to go up from the present 547 to 600 with the government reducing population criterion for issuance of a bar licence. So far for every 13,000 population one pub was allowed in the Greater Hyderabad Municipal Corporation (GHMC) limits, and as per the new policy , a pub is allowed to be set up for every 11,000 population in the city. In a good news, wine in the state has become cheaper with the government deciding to reduce value added tax (VAT) from the present 150 per cent to 70 per cent. Even excise duty on wine has been marginally cut.As a result of tax reduction, maximum retail price ( MRP ) of all pure grape fruit wines in premium category will fall by 30 to 35 per cent in the state.“It is a balanced policy and we have come up with it considering all factors, including revenue generation as well as changing lifestyle in a city that is emerging as a global destination,“ said excise commissioner R V Chandravadan.The new bar policy has provided four slabs for fixing license fee, depending on li quor serving area of a pub. If a pub owner is to pay Rs 40 lakh for 500 sq metres `liquor serving' area, he will have to shell out 10 per cent more for a 500 sq mt750 sq mt area.The license costs 20 percent more if the liquor serving area is between 750 sq mt and 1,000 sq mt, and 30 per cent more if the area is more than 1,000 sq mt.“All this will result in consumers paying more for both sumers paying more for both drink and food at a pub. However, the amount of hike is the owner's discretion. He will decide whether to hike the price of food or drink, or both, depending on how he wants to spread out the burden on to consumers,“ said D Venkateswar Rao , president of Telangana Bar and Pub Owners Association.The main concern Venka teswar Rao expressed was on service tax to be levied on license fee.“Fifteen percent service tax on license fee is huge. We have requested the government to subsume this into the license fee and save both the trader and consumer from the burden,“ said Venkateswra Rao “We understand the concerns of both traders and consumers. We are working on models to save the trade from this additional burden and accordingly we have sent a proposal to chief minister.He will take a call,“ said the excise commissioner.