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Ahead of Independence Day, Kolkatans may have to spend more on their booze. According to new reports, the Bengal government has tweaked the excise duty structure by adding a new levy, which has lowered the number of declared price slabs and hiked up the additional excise duty.
From August onwards prices for both Indian-made and foreign liquor are expected to increase by 5 to 7 per cent and domestic liquor prices are projected to rise by Rs 5 to 10 per bottle. After this year’s annual Budget, The Excise Department has received requests from liquor manufacturers to hike up prices for foreign liquor that has been produced domestically, and some reports also state that taxes on liquor can also go up.
In a recent notification, a new duty of Rs 5 per bulk litre has been imposed on extra neutral alcohol (ENA), which is key for producing India Made Foreign Liquor (IMFL) like whisky, vodka, and rum. While the excise duty remains at Rs 50 per bulk litre, the additional excise duty has gone up.
In the case of beer, the number of declared price slabs and the excise duty have been kept unchanged. However the additional excise duty has increased in the range of 4-40 per cent for strong and mild beer. “The change of AED and MRP round-off ceiling provided under this notification shall be made applicable in respect of products registered on or after the date of effect of this notification and all existing and previously registered products lying unsold at any end, including those against which requisition of import has already been made, shall be allowed to be liquidated against rates with which such products were earlier registered,” says the excise notification.
The Maximum Retail Price (MRP) of liquor in West Bengal is influenced by several factors, including declared price, excise duty, additional excise duty, registration fee for production, distributor margin, wholesaler margin, retailer margin, and a special purpose fee aimed at promoting responsible drinking.
