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Black Label Whisky: One Nation One Tax has been said in the country for a long time. This is why GST was brought. But there are many products on which there is still a huge difference in tax rates in different states. The most important of this is Shakra …Read more
There is a huge difference in liquor prices in different states of the country.
The price of a bottle of liquor in Goa is 100 rupees. The same liquor is available for Rs 305 in neighboring state of Karnataka, Rs 229 in Telangana and Rs 205 in Rajasthan. This difference in prices is due to different excise duty and other taxes imposed by the states. Goa has the lowest tax on alcohol, while Karnataka has the highest tax. According to data from the International Spirits and Wine Association of India (ISWAI), liquor is charged 55 per cent excise duty in Goa, while in Karnataka this fee is up to 80 per cent. The tax rates in Goa have increased slightly compared to a few years ago, but it is still the lowest.
Price difference
This difference in alcohol prices is also clear in popular brands. For example, a bottle of black label whiskey is priced at Rs 3,310 in Delhi, Rs 4,200 in Mumbai and about Rs 5,200 in Karnataka. This difference not only harasses consumers but also weakens the principle of ‘One Nation, One Tax’. The industry is constantly demanding the government to impose uniform tax across the country, but the Finance Minister of the states is not taking any steps in this direction.
In the Times of India, there is a detailed printed about the prices of liquor. Due to different taxes, smuggling of liquor is increasing in many states. For example, people of Delhi go to Haryana to buy cheap liquor. Similarly, many people in Tamil Nadu buy liquor from Puducherry because the price is also low due to the tax being there. Due to this, more taxing states are losing revenue.
Compulsion of states
After the implementation of GST, the main sources of income are left for the states of excise duty on alcohol and VAT on petrol and diesel. In such a situation, especially in the era of free schemes, the states are not ready to give up their right to impose tax. Finance ministers believe that the lack of revenue from these taxes is met.
Industry demand
ISWAI CEO Sanjeet Padhi says that we understand that the states need to increase their income, but for this a permanent model will have to be made. By rationalizing taxes, consumers can buy better and premium products. Drink less than this, will promote the thinking of good drink. Tax reforms have increased revenue in states like Maharashtra and Karnataka, which is sustainable for a long time. Similarly, the Confederation of Indian Alcoholic Beverages Industry (Ciabc) also described different tax rates as a big challenge for the industry. Deepak Roy of Ciabc said that there is no uniform strategy for the Indian liquor industry. The industry needs a uniform tax system, which speeds up its development.