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The Hindu
29-05-2025
- Business
- The Hindu
New liquor pricing regime takes effect in U.T., Puducherry government aims to net additional annual revenue of ₹185 crore
A new liquor pricing regime that took effect in the Union Territory will see tipplers shell out substantially more for their preferred alcohol, beer and wine brands. The new rates came into force following the Lieutenant Governor's assent for the decision taken at a Cabinet meeting chaired by Chief Minister N. Rangasamy in April to introduce steep hikes in excise duty, additional excise duty, special excise duty, and a doubling of licence fee to boost revenue. According to the hikes in excise duty and additional excise duty on IMFL, beer and wine notified by the Department of Revenue and Disaster Management (Excise), the excise duty on a 750 ml IMFL bottle will increase from ₹10 to ₹47, from ₹3 to ₹11 for 180 ml bottle, from ₹6 to ₹7 for 650 ml bottle of beer, and from ₹13 to ₹26 for a 750 ml bottle of wine. The Deputy Commissioner (Excise) said the duty increase was expected to generate an additional revenue of ₹185 crore per year for the government. According to the revised rates, the additional excise duty for ordinary IMFL brands (with a declared price below ₹600 per case) has been raised from ₹100 to ₹110 per proof litre and from ₹115 to ₹125 per proof litre for medium and premium brands (priced at ₹600 or above per case). Likewise, the duty on wine has been hiked from ₹25 to ₹30 per bulk litre, and from ₹10 to ₹12 per bulk litre for beer. Accordingly, the new rates for spirituous liquors, liquors whether Indian made, foreign manufactured or imported into the Union Territory, excluding beer, will range between ₹85 and ₹325 per proof litre, between ₹33 and ₹42 per bulk litre for beer and from ₹50 to ₹145 per bulk litre for wine. Officials reason that even after these hikes, the prices of popular spirits remain competitive in relation to adjacent markets. 'There is bound to be a calibration of a rate revision to balance the task of raising additional revenue for the government against maintaining the market edge', an official said. Meanwhile, it is also proposed to increase the licence fee for liquor factories, wholesale and retail sale of liquor, and the duty on export and import. However, unlike the excise duty hikes which were effected under the relevant sections of the Puducherry Excise Act, 1970, the licence fee revision needs to be passed through an amendment in Puducherry Excise (Amendment) Rules, 2025. Therefore, a draft notification has been published on the website of the Excise department and further consultations are likely before the revised rates get official sanction, the official added. These hikes in excise duty and licence fee can be seen as a corollary to the broader government decision to liberalise the liquor policy. The government had already sanctioned close to a 100 new resto bars and granted licences to new distillery units, and these were the moves that triggered the Opposition accusations of procedural irregularities, corruption and of placing profit over public good. However, from a revenue standpoint alone for a government seeking to shore up additional annual revenue in the range of about ₹350 crore, it should be hardly surprising that the government has turned to one of its most dependable cash cows. According to the Budget data for 2024-25, revenue proceeds from State Excise contributed to about 23% of the Union Territory's own annual revenue, third only to power sector (34.18%) and commercial tax (32.54%). The Budget Estimates for 2025-26 envisage raising revenue receipts from State Excise component to an estimated ₹1,800 crore, or 23.56% of estimated own revenue receipts of ₹7,641.40 crore. Already, since January 1, the Value Added Tax (VAT) on fuels have been raised by approximately 2.44% for petrol and 2.57% for diesel across the Union Territory. The government, meanwhile, has also proposed to substantially hike Guideline Land Register value, registration charges, including those of certain categories of vehicles, to generate more own revenue to the coffers.
New Indian Express
28-05-2025
- Business
- New Indian Express
Tipplers feel pinch as liquor prices hiked in Puducherry after steep increase in excise duty
PUDUCHERRY: Tipplers in the Union Territory will now have to shell out more for their drink as liquor prices across all categories—Indian Made Foreign Liquor (IMFL), beer, and wine—have gone up, following a steep hike in Excise Duty (ED) and Additional Excise Duty (AED). The revised rates, notified by the Department of Revenue and Disaster Management (Excise), came into effect on Wednesday. This is the first hike in excise duties since July 2019. As per the official notification, the ED for cheaper and ordinary IMFL brands (with a declared price below ₹600 per case) has been raised from ₹100 to ₹110 per proof litre. For medium and premium brands (priced at ₹600 or above per case), the ED has increased from ₹115 to ₹125 per proof litre. The ED on wine has risen from ₹25 to ₹30 per bulk litre, while for beer, the rate has gone up from ₹10 to ₹12 per bulk litre. AED slabs have also been revised with a rationalization of slabs. The new AED rates for IMFL range from ₹85 to ₹325 per proof litre. For beer, it ranges between ₹33 and ₹42 per bulk litre, while for wine, it spans from ₹50 to ₹145 per bulk litre.
