Govt hikes VAT, liquor to cost more in Haryana

The price of country liquor, Indian Made Foreign Liquor (IMFL) and beer will increase in Haryana from April onwards as the state government has increased value added tax (VAT) by two percent (up to 10 per cent from the existing 8 per cent).

By: Express News Service | Chandigarh | Updated: March 3, 2016 10:12 am
alcohol-759 Representational image. (Express archive)

The price of country liquor, Indian Made Foreign Liquor (IMFL) and beer will increase in Haryana from April onwards as the state government has increased value added tax (VAT) by two percent (up to 10 per cent from the existing 8 per cent). The hike forms part of the new excise policy for the 2016-17 financial year, approved by the state cabinet here on Wednesday.

The new excise policy was approved in a cabinet meeting held under the chairmanship of Chief Minister Manohar Lal Khattar. The state has also introduced an online facility for passes and permits for transportation of liquor.

The increase in VAT follows the four per cent increase in last year’s policy, when VAT was increased from four to eight percent. The MRP of IMFL and beer brands has been rationalised as per market trends. Excise duty will remain unchanged except for draught beer and ready to drink beverage where it has been brought at par with mild beer.

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The government had introduced e-tendering of liquor vends in the last policy for allotment of retail outlets. This will continue for this year as well. The total number of retail outlets of country liquor and Indian Made Foreign Liquor (IMFL) in the state will remain unchanged at 3,500. Sub-vends will be allowed in gram panchayats with populations of less than 1,000 people but only with the prior consent of the gram panchayat.

The Haryana government would encourage modern shops with facilities for customers. As per the new policy, number of machine generated points of sale (POS) would be increased. While this was increased in the 2010-11 excise policy, the maximum basic quota has been increased this time. For country liquor, basic quota has been increased from 900 lakh proof litre to 950 lakh proof litre and that of IMFL from 500 lakh proof litre to 550 lakh proof litre.

The additional excise duty has been increased for country liquor from Rs 12 per proof litre to Rs 18 per proof litre and that of IMFL from Rs 30 per proof litre to Rs 45 per proof litre. The facility of quota transfer has been introduced to curb the practice of uchanti sales or sales on return basis.

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