No govt tax hike on beers a welcome sign: Brewers' body
Mumbai: The beer industry, which has been witnessing a consistent excise duty rise for a decade compared to IMFL, has welcomed the state's decision to spare beer of tax hike this time.
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The industry has always been pressing for a relatively more encouraging, liberal and competitive tax structure compared to IMFL, given the healthier nature of beer than the former's high spirit content.
Vinod Giri, Director General, Brewers Association of India (BAI), said, "The taxes on beer are already very high in the state. In the last 10 odd years, excise duty on beer went up by 32% compared to just 9% on IMFL, leading to a strange situation where a bottle of beer is priced up to 50% more than the competing nips of IMFL.
It's not surprising then that the beer industry turnover remained flat in the state over the last decade, whereas sectors like IMFL galloped at an average compounded growth rate of 7% year after year for 10 years.
" It may be mentioned here that beer has far lesser pure spirit content than IMFLs.
Tuesday's decision of the state cabinet to hike taxes on premium and smaller IMFL brands and country liquors, besides increasing permit room license fees, will come into effect only after 14-15 days after the final notification.
— Chittaranjan Tembhekar
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