The Maharashtra government has curtailed the excise duty on imported liquor brands by 50 per cent, highlighted reports. This is believed to be undertaken to arrest smuggling and bootlegging of the same.
A notification regarding this was proclaimed on Thursday, November 18. According to accounts, the price of a 100ml imported bottle which is usually scotch whisky commences from a minimum of INR 5,800 to a maximum of INR 14,000. This is anticipated to reduce by 35-40 per cent.
Accounts have quoted a senior state government official elaborating on how the taxes have been reduced from 300 per cent to 150 per cent. It is expected that from Monday, November 22, onwards, the curtailment in prices will be undertaken by the liquor companies.
Officials from the excise department have stated that in the three financial years commencing 2016-17 to 2018-19, excise revenue from the imported liquor was nearly INR 200 cr, stated narratives.
They, however, added that the revenue fell to INR 100 cr during the fiscal year 2019-20 and 2020-21. They attribute this to the sudden surge in sales tax and not to COVID-19.
The formula for excise duty was earlier revised which added to the tax burden causing prices to rise. This affected profits and sales volume. Now, with the tax cut, they expect the revenue and volume to further rise.
Officials from the excise hope for the bottles sale to increase to 2.5 lakh from the current 1 lakh. This, according to them will increase revenue to INR 250 cr from the current INR 100 cr.
MRP on imported whisky through the new notification will fall by nearly INR 1500-2000. Based on narratives, this applies to rum, whisky, brandy, vodka and gin, not beer and wine, stated officials.
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