Home >News >India >Alcohol price to go up by 10% in Rajasthan after excise duty hike

JAIPUR : To make up for revenue loss during coronavirus lockdown, the Rajasthan government has decided to hike excise duty on liquor by 10 percentage points. The excise duty on Indian-Made Foreign Liquor (IMFL) bottles having price below 900 will now be 35% instead of 25%. For IMFL bottles having price of 900 or above, duty will now be 45% instead of 35%, according to an official of the state excise department.

The basic licence fee for sale of Country Liquor and Rajasthan Made Liquor (RML) was also raised.

The excise department of the state issued the notification yesterday increasing the excise duty on IMFL and beer to 45%. For some categories of IMFL, the excise duty is lower at 35%.

Rajasthan is expected to mop up 800 crore from the hike in these changes.

States are finding ways to increase the revenue as economic activity has crashed to a halt during the lockdown and collection of GST or excise is pathetically low and restricted to essential items which are allowed to be sold during the lockdown period.

Rajasthan's annual excise collection target is around 15,000 crore and there is already a 70 per cent shortfall in revenue in April as the impact of the lockdown sets in.

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