Hartford -- Legislators questioned Gov. Dannel P. Malloy's tax proposals Monday in a lengthy public hearing as one of the biggest areas of focus was Malloy's proposed changes to the state's liquor laws.

Malloy says his overall liquor proposals would add $3.3 million to state coffers each year, but the state's package stores association is questioning those estimates.

Malloy is calling for changing the state law to increase the alcohol-selling hours at package stores and supermarkets on Sunday to 8 p.m., compared to 5 p.m. currently, and 10 p.m. Monday through Saturday, compared to 9 p.m. now.

"There's a lot of economic uncertainty'' about how the proposed changes would impact the stores because the precise number of border-crossing liquor buyers is unknown, said Ben Barnes, Malloy's budget director. "I know the data is uncertain as to the impact of Sunday sales. ... I don't know the impact financially in terms of increased sales.''

But Sen. L. Scott Frantz of Greenwich, who serves as the committee's ranking Senate Republican, said he was concerned about a "detrimental effect'' on small package store owners with small profit margins who are struggling now to keep their businesses open.

"We did not propose this for revenue,'' Barnes told Frantz. "The governor has proposed these changes because they are pro-consumer. ... The increased hours will provide for greater convenience for the public. ... The additional hours are not mandatory. They are optional.''

Despite having numerous town hall-style meetings in his district in Ellington and East Windsor, state Rep. Christopher Davis said he has never seen an outcry for later hours among his constituents.

"I never had one of them say, 'I wish I could buy liquor at 10 o'clock at night,' '' Davis said.

Alcohol is one of the most highly regulated commodities in Connecticut as state law controls how long the package stores can remain open each day, as well as overseeing a minimum price system that essentially controls the price. Store owners are not permitted to sell liquor for below the minimum price, regardless of how many bottles they sell. In addition, only adults of a certain age are allowed to purchase the product under the law.

Barnes said the state's minimum pricing system is "anathema to competition that applies to all other sectors.''

"When I go and get my haircut, my barber charges me $18 or $17, I can't remember,'' Barnes said, adding that the barber can charge any amount that the market will bear.

Noting that opponents predicted that hundreds of package stores could close with the adoption of Sunday sales in 2012, Barnes said, "My understanding is there is one fewer liquor store in operation'' than when Sunday sales began more than two years ago.

Barnes says he rejects the notion that "the sky will fall'' if the law is changed with longer hours and adjustments in the pricing system.

But opponents objected to the comparisons, saying that most commodities are not as highly regulated as liquor.

"You can't compare alcohol to a haircut or shrubs,'' said Davis, the committee's ranking House Republican.

The package stores have noted that Connecticut has the highest liquor taxes in New England. When asked if Connecticut's liquor tax is comparable to surrounding states, Barnes responded, "It is not uncomparable.''

Malloy's consumer protection commissioner, Jonathan Harris, said he believes that the package store owners "can survive and thrive as all other small businesses do'' in a tough economic environment. He described Malloy's plan as making "modest changes'' to the law.

He agreed with Barnes, saying the stores did not close after Sunday sales were implemented two years ago under the theory of "Chicken Little - the sky was going to fall.''

While the increased hours would be voluntary, the store owners say they largely need to remain open until the maximum hour of 9 p.m. because of the competition.

The state currently has 1,226 active package store permits, which are limited by the number per town that is based on population, Harris said. He noted that his local package store in West Hartford closes at 8 p.m., rather than the maximum hour of 9 p.m. Malloy's plan would allow individuals or corporations to own six package stores, rather the current maximum of three stores.

"Many of these retailers are hanging on by a thread. The margins have never been thinner,'' Frantz said.