Government hikes excise duty on foreign liquor

  • | Thursday | 22nd February, 2018

“No excise duty/counter veiling duty is levied on spirit, wine and beer when imported in state from outside India. I, therefore propose to increase the present rates of excise duty and other fees.”The excise duty on spirit, beer and wine is proposed to be increased by about 200 per cent in Gujarat, where permission for consumption of foreign liquor is given to various permit holders and foreign tourists under the Gujarat Prohibition Act 1949. The duty on spirit and wine is proposed to be increased from Rs 100 per proof litre to Rs 300. More than 57 per cent of the development expenditure of state —Rs 1.11 lakh crore — has been allocated towards social services. I therefore propose to levy special fee on spirit, wine and beer being imported from outside India in the state of Gujarat,” Patel added.

Gujarat Deputy CM Nitin Patel. (Express Archive) Gujarat Deputy CM Nitin Patel. (Express Archive) The Gujarat government is set to earn Rs 106 crore in revenue after it proposed to hike excise duty and other fees on foreign liquor being imported into the state, including those sourced by the CSD canteen for military personnel. Presenting the budget estimates for the 2018-19 fiscal year in the Assembly on Tuesday, Deputy Chief Minister Nitin Patel said, “The rates of excise duty and other fees have not been revised since 1999-2000. I, therefore propose to increase the present rates of excise duty and other fees.” The excise duty on spirit, beer and wine is proposed to be increased by about 200 per cent in Gujarat, where permission for consumption of foreign liquor is given to various permit holders and foreign tourists under the Gujarat Prohibition Act 1949. The duty on spirit and wine is proposed to be increased from Rs 100 per proof litre to Rs 300. The budget also sought to increase the excise rates of different varieties of foreign spirit, wine and beer imported by CSD canteen for military personnel in the range of about 200 per cent. Apart from this, the transportation fees and special fees imposed per bulk litre on all spirits, wine and beer in Gujarat has also been increased significantly. “No excise duty/counter veiling duty is levied on spirit, wine and beer when imported in state from outside India. I therefore propose to levy special fee on spirit, wine and beer being imported from outside India in the state of Gujarat,” Patel added. The special fees imposed on spirit and wine is in the range of Rs 500 to Rs 8000 per bulk litre for sales price that has been divided into three different slabs — up to Rs 1,500, between Rs 1,500-Rs 6,000, and exceeding Rs 6,000. Mild beer and strong beer will also attract special fees of Rs 33 and Rs 42 per bulk litre. Meanwhile, government officials said that the budget indicates an overall surplus of Rs 889 crore and a revenue surplus of Rs 5,998 crore for the financial year 2018-19. More than 57 per cent of the development expenditure of state —Rs 1.11 lakh crore — has been allocated towards social services. “This surplus has been used for incurring developmental capital expenditure by the state,” Chief Minister Vijay Rupani later tweeted. The fiscal deficit, which was 2.24 per cent of the GSDP (Gross State Domestic Product) in 2015-16, has also come down to a record low of 1.42 per cent during 2016-17. “This has been possible because of increase in our revenue receipts and reduced dependence on borrowings for developmental expenditure,” Patel said in his budget speech. “As per the quick estimate, GSDP at current prices in 2016-17 has grown 13 per cent over 2015-16,” he added. Patel also pointed out that the state’s tax revenues during the period April 2017- January 2018, compared to the same period during the last year, showed a growth of 20.92 per cent. The minister projected a reduction in the state’s pubic debt at 15.96 per cent of GSDP for 2018-19 from 16.46 per cent in 2017-18. For all the latest Ahmedabad News, download Indian Express App

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