Gujarat Budget 2018: Liquor to get prohibitively expensive

Consuming liquor is set to become costlier in Gujarat as the state government announced a hike of almost three times in excise duty and other levies on spirits, while also introducing a special fee on foreign liquor.

Gujarat is a dry state, having adopted prohibition policy since it came into existence, but permission for consumption of liquor is given to permit holders, and foreign tourists. The rates of excise duty and other fees on liquor were last revised in 1999-2000.

Deputy CM Nitin Patel announced that excise duty on spirit would go up from Rs 100 per proof litre to Rs 300 per proof litre. On beer, the present excise duty rate is Rs 25 per litre, which has been hiked to Rs 60 for strong beer, and Rs 33 for mild beer. In the case of wine, it has been hiked from Rs 100 per proof litre to Rs 300.

The transportation fee on various categories of spirits, wines and beers was hiked by 5-10 times, and special fee by three times.

The deputy CM proposed increase in excise duty on foreign liquor brought in the state by CSD canteen for military personnel. The excise duty levy was increased by 200% for a range of spirits, wines and beers.

The budget also proposed special fees on imported liquor.

Spirit and wine having sale price of up to Rs 1,500 would attract special fees of Rs 500 per bulk litre, those priced from Rs 1,500 to Rs 6,000 special fees of Rs 2,000, and fee of Rs 8,000 per bulk litre for those priced at more than Rs 6,000.

For mild beer, the special fees has been proposed at Rs 33 per bulk litre, and Rs 42 per bulk litre for strong beer.

The proposed increase in prohibition rates would lead to additional revenue of Rs 106.32 crore, Patel added.