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Prices of beer, wine hiked

Special Correspondent
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The State government on Thursday increased the prices of beer and wine by Rs. 10 a bottle to mop up additional revenue of Rs. 550 crore a year.

There would, however, be no change in the prices of hard liquor though the government had revised the price structure. The prices were merged into value added tax (VAT) to make it a simplified revenue structure. For instance, excise duty would be levied on supply price of the bottle and the resultant value would be calculated for the purpose of collection of VAT at the prescribed percentage.

Principal Secretary of Revenue Asutosh Mishra told The Hindu that it was decided to raise the prices of beer and wine by Rs. 10 a bottle because their prices had not been increased for a long time. In the case of hard liquor comprising nearly 250 brands of Indian Made Foreign Liquor (IMFL), there was no increase in maximum retail price by and large except for premium brands where the price had been marginally raised by Rs. 5 a bottle. The trade margin of AP Beverages Corporation remains the same as the government had increased it in May and November last year. The margin (comprising basic price + excise duty/countervailing duty + VAT) ranged from 28 per cent to 37 per cent on the basic price of bottles up to Rs. 1,000 a case and Rs. 1,550 a case beyond that. It had also fixed an additional trade margin of 12.5 per cent for bottles up to Rs. 700 a case.

In effect, the hike on both occasions together came to Rs. 9 a quarter bottle, Rs. 17 a half bottle and Rs. 32 a full bottle of ordinary brands. The rise was Rs. 13 a quarter bottle, Rs. 25 a half bottle and Rs. 48 a full bottle on premium brands.

Prices increased by Rs. 10 a bottle, State to mop up an additional Rs. 550 crore a year


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