Mumbai: In significant steps to capture smuggling and bootlegging of the import liquor brand, the state government has reduced customs for 50%.
Thus the price of a 1000 ml imported bottle, most scotch whiskey ranging from the minimum RS 5,800 to the maximum RS 14,000, at least will be reduced by 35 to 40%.
Notifications in this case were released on Thursday.
“We have reduced taxes from 300% to 150%.
Now, call reduction calls must be taken by liquor companies that are expected to do it on Monday and so on,” said a senior state government official.
According to the Ministry of Finance according to three years of finance from 2016-17 to 2018-19, excise income from imports spirits is around Rs 200 Crore.
However, they said, income was dipped with Rs 100 Crore during fiscal 2019-20 and 2020-21.
This, they said, did not occur because Covid but because of a sudden increase in sales tax.
“Also the formula for Customs was revised before.
This adds a heavy tax burden that leads to price increases and ultimately affects the profit limit and also sales volume.
With this tax deduction we expect volume and tax to grow further,” they added.
Sources with international spirits and Indian wine associations (ISWAI), said decisions would make prices in Maharashtra matches with those in other countries such as cave as an actual reduction to around 35 to 40%.
Excise officials expect bottle sales to increase to 2.5 lakh from 1 lakh at this time in ultimately increase income to Rs 250 Crore from RS 100 Crore at this time.
“With this piece we expect incidents like people smuggling bottles from Delhi and other states into Maharashtra through flights or trains to go down,” he added.
“New notifications will reduce the MRP on import whiskey around Rs 1500-2000.
This will make liquor rates equivalent to other countries and end their illegal entries to Maharashtra.
We will be able to stop the sale of non-paid liquor.
In the state and Prevent the gray market in this sector.
Please double the income in this sector from RS 100 Crores to 250 crores in one year) Valsa Nair Singh.
This will apply to whiskey, rum, brandy, gin and vodka and not for beer and wine , he said.
The country cuts customs in imported liquor by 50%
