Alcohol Price: Government to Increase VAT on Liquor From Next Month in This State

24 Oct, 2023 Author: Ayushee Joshi

Alcohol Price Hike: The Maharashtra government will be increasing the Value added tax (VAT) by 5% on liquor to boost revenue, with the decision having a visible effect on the alcoholic beverage industry. According to a report, the move to raise VAT may lead to consumers opting for less expensive choices such as rooftops, parks, and beaches. The government, on the other hand, has decreased the price of alcohol in Goa, Chandigarh, and Haryana.

Beer Prices May Get Reduced

The decision to raise the VAT on alcohol to 10% would affect consumers who drink in bars, clubs and lounges. This change, however, will have no effect on non-counter sales. On the other hand, the government intends to implement a new excise policy that would link beverage pricing to alcohol content. Beer prices are expected to fall as a result of this. Liquor has been seen as a significant source of revenue for the government. Last month, the Goods and Services duty (GST) department in Mumbai suggested raising the duty on alcohol served in restaurants and hotels with less than three stars from 5% to 15%.