Gujarat likely to hike excise duty on liquor by 50% to 100%

AHMEDABAD: Brace up for paying more for liquor in dry Gujarat. After tightening liquor laws, the state government has now trained its guns on hiking excise duty on liquor to discourage people from consuming alcohol.

Sources close to the development said that the Gujarat government is likely to increase excise duty on liquor sold from the official permitted shops by 50% to 100%.

Currently, the government charges Rs 25 to Rs 100 excise duty per proof litre of spirit which includes Indian Made Foreign Liquor (IMFL) and imported foreign liquor; wine and beer.

If the hike is effected, liquor officially sourced from permit shops can become 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.

Sources indicated that hike could also be effected in transportation charges and assessment fee.

Gujarat has 58 permit liquor shops and the 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.

Profit from permit shops

Gujarat has 58 permit liquor shops and the 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.

The excise income is expected to cross Rs 45 crore in 2017-18 fiscal, officials said.

“More than increasing its revenue inflow, the objective of hiking exciseon liquor isto give out a signal that government wants to discourage citizens to consume liquor,” sources added.

Market sources said that the hike in excise duty will resultin pricesjacking up in the black market as bootleggers are three time the price of liquor sold in the permit shops.