The government on Monday tabled a Bill to enhance the maximum rate of excise duty on Indian-made foreign spirits (IMFS) to augment its revenue.
While the government hopes to earn Rs 2,000 more annually, the consumer will have to cough out 10 per cent more. An official explains that on an average, there will be 10 per cent increase in the price of products.
At present, the maximum rate of duty is Rs. 125. The Bill seeks to increase it to Rs. 250 per proof litre in the case of ordinary brands; Rs. 300 per proof litre in the case of medium brands and Rs. 500 per proof litre in the case of premium brands.
(Proof litre prescribes the level of alcohol content. It means that there has to be 75 per cent alcohol in a litre of liquor. A case (of bottles) refers to nine litre liquor in which the strength of alcohol should be 6.75 litres.)
The classification of brands would be done through the State government’s notification, according to the statement of objects and reasons of the Bill, introduced by Natham R. Viswanathan, Electricity, Prohibition and Excise Minister, in the Assembly.
At present, the revenue through State excise on the IMFS is around Rs. 5,035 crore. By revising the ceiling, the government hopes to earn about Rs. 500 crore more through excise duty. Correspondingly, the increase in the revenue collection of sales tax will fetch about Rs. 1,500 crore additionally, the official says.
