In the aftermath of the Maharashtra government curtailing the excise duty by 50 per cent on imported liquor, the actual price reduction of certain brands’ bottles was reported to be between 31-36 per cent.
According to reports, excise officials attributed this nuance to a compounded tax structure wherein the excise duty is calculated on the Union’s customs duty thus, on the derived price the VAT is loaded.
Based on an account by the Times of India, Kantilal Umap, the excise commissioner, in the beginning, a mere four brands attained approval on their MRP. Apart from this, a few of the other major brands are yet to provide their applications that include the final price list for the commodity.
The excise duty was slashed on the premier liquor segment by 50 per cent from the earlier 300 per cent to 150 per cent to crackdown smuggling and bootlegging.
On the other hand, the International Spirits and Wine Association of India has appreciated the tax cut resolution undertaken by the state government. Adding that it was a recognition for the developing bottled-in-origin spirits of premium quality.
They believe it will help reduce illicit and spurious liquor, smuggling, as well as bring price rationalization and parity.