Gujarat to Hike Excise Duty on Liqour

Kerala - Excise Duty - COVID-19 - Taxscan

Gujarat Government has decided to increase the excise duty on liqour by 50% to 100% sold from the official permitted shops. This is to strengthen the pay more on liquor especially in a country like dry Gujarat. By levying heavy duty on liquor state government is planning to discourage the people from alcohol consumption.

By this, the people should pay more on liquor from officially permitted shops and such will become more expensive by Rs 37.50 to Rs 200 per bottle depending on the percentage hike and the kind of liquor.

“The state government has proposed to increase the rates by 50% to 100% in each category of liquor. The decision on exact quantum of percentage hike in excise and other duties is pending decision which will be finalized shortly. A formal announcement is likely to be made soon by the government,” sources close to the developments added.

State government had earned a revenue of Rs 32.5 crore in excise duty in 2015-16 and Rs 38.9 crore in 2016-17 in a country like Gujarat having 58 permit liquor shops. This hike would increase the transportation charges and assessment fee.

Heavy duty on different category of liquor will reflected a triple price hike up in black market than the permitted shops prices.

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