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Time of India
05-05-2025
- Business
- Time of India
Why beer in Goa costs you Rs 100 but Rs 305 in Karnataka, Rs 229 in Telangana?
A bottle of alcohol priced at Rs 100 in Goa can cost as much as Rs 305 in neighbouring Karnataka, Rs 229 in Telangana, and Rs 205 in Rajasthan—highlighting the stark disparity in liquor prices across states due to varying excise duties and taxes, reported TOI. Despite a marginal increase in recent years, Goa continues to levy the lowest excise duty at 55 per cent , while Karnataka imposes the highest at 80 per cent , according to the International Spirits & Wine Association of India. This wide gap in taxation has a noticeable impact on retail prices. For instance, a bottle of Black Label whisky costs Rs 3,310 in Delhi, Rs 4,200 in Mumbai, and nearly Rs 5,200 in Karnataka. Industry experts argue that such inconsistencies undermine the 'one nation, one tax' vision. Yet, state finance ministers have shown little inclination to address the issue, even as high-tax states lose revenue to bootlegging and illicit trade, according to a TOI report. With excise on liquor and VAT on petrol and diesel being the only major sources of revenue for states after the introduction of goods and services tax, finance ministers are reluctant to give up further taxation powers, especially in a season of freebies, when the tax is used to bridge the deficit. "While we recognise that the states have to augment their revenues, there is a need to build a sustainable model which focuses on stability and allows consumers to uptrade through premiumisation. This can be achieved through tax rationalisation and creating a pricing ladder that allows consumers to uptrade, thereby building the ethos of drink less, drink better. We have seen revenue growth in the past in states like Maharashtra and Karnataka, where price correction through tax rationalisation has helped in incremental revenue growth that is sustainable," said Sanjit Padhi, CEO, ISWAI, the industry lobby representing global giants told TOI . Rival body Confederation of Indian Alcoholic Beverage Industry too has said that different tax levels across states is a big challenge for the industry. "There is no cohesive strategy for the Indian alcoholic beverage industry. The industry needs a uniform taxation mechanism which will propel the growth," CIABC's Deepak Roy told TOI.>
Time of India
05-05-2025
- Business
- Time of India
Why beer in Goa costs you Rs 100 but Rs 305 in Karnataka, Rs 229 in Telangana?
A bottle of alcohol priced at Rs 100 in Goa can cost as much as Rs 305 in neighbouring Karnataka, Rs 229 in Telangana, and Rs 205 in Rajasthan—highlighting the stark disparity in liquor prices across states due to varying excise duties and taxes, reported TOI. #Pahalgam Terrorist Attack Inside Operation Tupac: Pakistan's secret project to burn Kashmir Who is Asim Munir, the Zia-style general shaping Pakistan's faith-driven military revival 'Looking for partners, not preachers': India's strong message for EU amid LoC tensions Despite a marginal increase in recent years, Goa continues to levy the lowest excise duty at 55%, while Karnataka imposes the highest at 80%, according to the International Spirits & Wine Association of India. This wide gap in taxation has a noticeable impact on retail prices. For instance, a bottle of Black Label whisky costs Rs 3,310 in Delhi, Rs 4,200 in Mumbai, and nearly Rs 5,200 in Karnataka. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pakistan: Jewelry On Sale For Half Price! (See Price List) Luxury Jewelry | search ads Undo Industry experts argue that such inconsistencies undermine the 'one nation, one tax' vision. Yet, state finance ministers have shown little inclination to address the issue, even as high-tax states lose revenue to bootlegging and illicit trade, according to a TOI report. With excise on liquor and VAT on petrol and diesel being the only major sources of revenue for states after the introduction of goods and services tax, finance ministers are reluctant to give up further taxation powers, especially in a season of freebies, when the tax is used to bridge the deficit. Live Events "While we recognise that the states have to augment their revenues, there is a need to build a sustainable model which focuses on stability and allows consumers to uptrade through premiumisation. This can be achieved through tax rationalisation and creating a pricing ladder that allows consumers to uptrade, thereby building the ethos of drink less, drink better. We have seen revenue growth in the past in states like Maharashtra and Karnataka, where price correction through tax rationalisation has helped in incremental revenue growth that is sustainable," said Sanjit Padhi, CEO, ISWAI, the industry lobby representing global giants told TOI . Rival body Confederation of Indian Alcoholic Beverage Industry too has said that different tax levels across states is a big challenge for the industry. "There is no cohesive strategy for the Indian alcoholic beverage industry. The industry needs a uniform taxation mechanism which will propel the growth," CIABC's Deepak Roy told TOI.
Time of India
04-05-2025
- Business
- Time of India
Rs100 in Goa & Rs305 in Karnataka, excise duty difference defeats spirit of '1 nation, 1 tax'
This is a representational AI image (Pic credit: Lexica) NEW DELHI: A bottle of alcohol that costs Rs 100 in Goa will set you back by Rs 305 in neighbouring Karnataka, Rs 229 in Telangana and Rs 205 in Rajasthan. The massive price variation is due to the different levels of excise duty and other taxes that states levy, with the trend of Goa having the lowest levies remaining unchanged. If anything, taxes in Goa have inched up compared to a few years ago. Goa levies the lowest excise of 55%, while the tax rises 80% in Karnataka, the highest in the country, according to data compiled by International Spirits & Wine Association of India. As a result, a bottle of popular Black Label whisky costs Rs 3,310 a bottle in Delhi, Rs 4,200 in Mumbai and around Rs 5,200 in Karnataka. The difference in duties defeats the 'one nation, one tax' principle, with finance ministers making no effort to correct the situation, amid calls from industry to rationalise taxes. It also results in states with higher taxes losing revenue to bootlegging. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Want Lower Bills Without Changing a Thing? elecTrick - Save upto 80% on Power Bill Learn More Undo FMs reluctant to give up taxation powers For instance, individuals in Delhi often hop across to Haryana to purchase alcohol as is the case in Tamil Nadu, where many people purchase liquor from Puducherry. With excise on liquor and VAT on petrol and diesel being the only major sources of revenue for states after the introduction of goods and services tax, finance ministers are reluctant to give up further taxation powers, especially in a season of freebies, when the tax is used to bridge the deficit. "While we recognise that the states have to augment their revenues, there is a need to build a sustainable model which focuses on stability and allows consumers to uptrade through premiumisation. This can be achieved through tax rationalisation and creating a pricing ladder that allows consumers to uptrade, thereby building the ethos of drink less, drink better. We have seen revenue growth in the past in states like Maharashtra and Karnataka, where price correction through tax rationalisation has helped in incremental revenue growth that is sustainable," said Sanjit Padhi, CEO, ISWAI, the industry lobby representing global giants. Rival body Confederation of Indian Alcoholic Beverage Industry too has said that different tax levels across states is a big challenge for the industry. "There is no cohesive strategy for the Indian alcoholic beverage industry. The industry needs a uniform taxation mechanism which will propel the growth," CIABC's Deepak Roy said recently.
Hans India
22-04-2025
- Business
- Hans India
ISWAI commends state govts for implementing progressive excise policies
Vijayawada: The International Spirits and Wines Association of India (ISWAI) praised state governments for their progressive excise policies aimed at modernising retail formats, increasing revenue, and enhancing consumer experiences. Key innovations include Uttar Pradesh's composite retail formats, Andhra Pradesh's privatised model, Rajasthan's premium mall-based stores, and Madhya Pradesh's single-bottle billing system, among others. These initiatives are reshaping the alcohol retail landscape across the country. Sanjit Padhi, CEO of ISWAI, remarked, 'The reforms signal a paradigm shift in the alcobev sector, reflecting the commitment of state governments. These policies are improving compliance and transparency while fostering sustainable, consumer-focused growth.' He highlighted Uttar Pradesh's impressive revenue growth from Rs 24,000 crore in FY 18/19 to a target of Rs 55,000 crore in FY 25/26, attributing this success to ISWAI members, who contribute over 55% of the state's IMFL revenue. New outlets and investments in retail infrastructure are expected to enhance the consumer experience further. The reforms also stabilise vendor operations by offering two-year licenses through an e-lottery system, capping ownership at two outlets, and promoting fair competition. Padhi added, 'We are seeing the rise of a modern alcobev ecosystem that aligns with global best practices, providing consumers with quality brands and deterring counterfeit products.' In Andhra Pradesh, the privatised retail model supports 3,736 liquor vends and has led to a Rs 1,800 crore increase in revenue. Padhi also stressed the need for deregulation in pricing, stating that market forces should dictate prices to prevent businesses from pricing themselves out of the market. ISWAI advocates for removing pricing controls to encourage investment and enhance contributions to state revenues. As more states adopt these successful practices, India's alcobev landscape will continue to evolve toward a balanced and consumer-centric ecosystem.
