Liquor prices rise after excise duty hike, bar owners protest 10% VAT
It may go much further in high-end restaurants.
On the other hand, rates of premium liquor like scotch may only inch up moderately after last month's hike in excise duty by the state govt, said members of the Nagpur District Permit Room Association, a bar owners' guild citing calculations on the basis of latest maximum retail price.
The fresh stock, on which the new rates are applicable, has reached the dealers and will be available in the bars in the coming days, said the association's president, Rajeev Jaiswal.
A 180ml bottle of rum that costs Rs140 to Rs160 will be in the range of Rs220 to Rs260 once the fresh stock reaches wine shops, he added.
Certain brands of whiskies, normally consumed by the cost-conscious consumers, will now be in the range of Rs220 to Rs260 at wine shops, as against the older price of Rs160 to Rs190. In the bars, it would be easily 350 and further high for some brands.
A 180ml bottle of slightly higher-end whisky will only be costlier by Rs 20.
The excise duty does not impact the costlier brands of liquor, said Jaiswal, addressing a press conference on Friday. There is no change in the rates of beer or wine too.
While the govt has increased the excise duty, the permit room owners are already up in arms against the value-added tax (VAT) on liquor. A 5% VAT was first imposed in 2005 to raise finance for drought relief in Marathwada. It was basically a surcharge. The drought ended, but VAT continued, and in 2023 another 5% VAT was imposed.
VAT is only applicable for bars, which takes the rates up as compared to the wine shops, said Jaiswal.
The association has been appealing for the removal of VAT and has met the political leadership at every level, he said. The association moots that the VAT component charged to the retailers should be added to the manufacturers' liability instead. This will lead to an equal passing on of the tax down the trade chain, covering even wine shop owners, he said.
OWNERS CALL FOR STRIKE, BARS TO BE CLOSED ON MONDAY
Tipplers may find it difficult to find a place to settle down for a drink this Monday. Bar owners across the state have called for a one-day strike against the imposition of 10% VAT, said the president of the Nagpur District Restaurant Permit Room Association, Rajeev Jaiswal. Even the premium hotels may not serve liquor to those other than staying in their rooms, he said. The imposition of VAT has been a vexed issue for the bar owners, he said.
Protests would be held at the Samvidhan Chowk on Monday. After the symbolic protest on Monday, the association may decide to further intensify the agitation, said Jaiswal.
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