Liquor prices to go up by 10% as Rajasthan hikes excise duty
The government is likely to make approximately Rs 800 crore from the change, said officials.Updated: Apr 29, 2020 23:02 IST
Tipplers in Rajasthan may have to shell more to enjoy their drinks as the Rajasthan government increased excise duty on Indian-made foreign liquor (IMFL) and basic license fee on country liquor on Wednesday. The bottling fee has also been increased a little. The government is likely to make approximately Rs 800 crore from the change, said officials.
According to the Rajasthan Excise (Second Amendment) Rules, 2020, notified on Wednesday, the additional fee to bottle IMFL having ex-distillery price (EDP) below Rs 900 will be Rs 5.50 per bulk litre. For IMFL which has EDP of Rs 900 or above, the fee will be Rs 11 per bulk litre. The notification also increased the basic license fee for sale of country liquor from Rs 10 to Rs 20 for one bulk litre.
In another development, the department amended notification of 1997 to the Rajasthan Excise Act, 1950, to increase additional fee. This has been increased from 25% to 35% for IMFL with EDP below Rs 900, and from 35% to 45% for IMFL with EDP of Rs 900 or above.
The additional excise duty on beer has also been increased from 35% to 45% of sum of ex-manufacturing unit price, CST and Export Fee, excise duty and actual cost reimbursed by the Rajasthan State Beverages Corporation Limited.
Onkarmal Rajotiya, joint secretary (excise), who signed both the notifications, said the changes are likely to increase the MRP of IMFL and beer by 10-12% and that of country liquor by Rs 2-3.
“All MRPs will be revised. Lower slabs will be mild but upper slabs will be little more expensive,” said excise commissioner Bishnu Charan Mallick.
Rajasthan annual excise revenue target is about Rs 15,000 crore; Rs 12,500 from excise and Rs 3000 from sales tax. There is a 70% shortfall in tax revenue in April, the first month of the 2020-21 financial year because of the lockdown to contain coronavirus disease (Covid-19). The state reported 74 new cases on Wednesday, taking the tally to 2,438. There have been 55 Covid-19 deaths.