Bacchus lovers to shell out more in Himachal Pradesh

Tribune News Service
Shimla, July 22

Drinkers will have to shell out more as the state government has increased the ex-distillery price (EDP) of the country liquor and Indian-made foreign liquor (IMFL) by 5 per cent.

Commissioner of state taxes and excise, Dr Ajay Sharma, said the hike had been made to meet the increased cost of production of liquor manufacturing plants.

As a result, the liquor would cost almost 10 per cent more, he said. There would be no impact on the rates of beer, wine, cider and the brands manufactured and bottled in foreign countries, he added.

The government exchequer is expected to gain an additional revenue of Rs 25 crore.

He said it brought to the notice of the government that the cost of extra neutral alcohol, the basic ingredient for manufacturing of liquor, had increased considerably. Similarly, the cost of glass bottle packing carton had seen an upward trend.

Sharma said the basic raw materials needed for manufacturing of liquor were taxable under the GST regime whereas liquor was covered under VAT. The taxes imposed under the GST could not be adjusted under VAT due to which the cost of production of liquor had increased, he added.

To protect the liquor industry, a marginal increase of 5 per cent in the ex-distillery prices had been made, Sharma said.

Sharma said normally the increase in EDP rates was made from April 1 every year but the same could not be made due to the implementation of the Model Code of Conduct for the Lok Sabha elections.