New Delhi: Goa is not a destination for just beaches but youngsters love to visit the city for its cheapest booze. Meanwhile, a recent survey has laid bare the taxe rates, which makes the alcohol cheaper here as compared to other states.
Against Goa’s cheap prices, there is neighbor Karnataka, which according to the survey, serves alcohol in the highest price. Among the country’s major markets, the tax rates are the highest here in India.
As per the estimation of the International Wine and Spirits Association of India survey for TOI, a bottle of spirits – that is, vodka, gin, whiskey, rum – costs Rs 100 in Goa can cost Rs 134 in Delhi and more. is Rs 513 in Karnataka At 49% of MRP, the amount collected in Goa is not low. But they are much lower than Karnataka’s 83% and Maharashtra’s 71%.
The price index takes into account import taxes on foreign products, which are common in all states. Foreign companies have long called for import tariffs on wine and spirits to be reduced, up to 150%.
Huge Difference
Foreign companies are looking to reduce taxes through free trade agreements currently being negotiated with the UK and European Union. Due to local taxes, there can be a difference of more than 20% in the price of a bottle of popular Scotch in Delhi and Mumbai.
Large differences in taxes are also the cause of interstate alcohol smuggling. Unlike most goods and services, alcohol and oils are among the products that are not currently marketed. GST, results in multiple taxes and rates across the country.
While there is talk of bringing petroleum products like petrol and diesel under the GST purview, alcohol is yet to come. With the excise duty cycle in the states expected to begin from next month, the industry is closely watching developments.