The assessable value and customs duties shall be reviewed in every subsequent year, while renewing the labels in April.
VIJAYAWADA: The State government has revised the prices of various liquor brands and amended the VAT (value-added tax), ARET (Additional Retail Excise Tax) and assessable value of foreign liquor brands, being levied in the form of a fixed component based on the MRP.
Orders for the rationalisation of ARET, VAT, AED/ACD and special margin and revision of assessable value of foreign liquor brands were issued by Principal Secretary (Excise) Rajat Bhargava on Friday, making the new prices effective from November 18.
The prices of the most popular liquor brands have been increased, while there has been a decline in the prices of unsold and unavailable brands. The revision has resulted in an increase in the prices of some liquor brands, which go up by Rs 10-40 per quarter bottle, Rs 10-50 per half bottle, and Rs 10-90 per full bottle. On the other hand, the prices of certain other brands have been decreased. The aim of these amendments is to ensure equal taxation for all types of liquor brands, the government stated.
AERT will be levied at the rate of 250% if the minimum price of Indian Made Foreign Liquor (IMFL) is less than Rs 2,500, followed by 150% if IMFL exceeds Rs 2,500, 225% on beer, 200% on wine, 50% on ready to drink (RTDs) and 75% on foreign liquor respectively.
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“The proposed levy of ARET as a percentage of basic price has necessitated further revision of VAT, AED/ACD and special margin at flat percentages so as to protect the government revenue as well as income of the beverages corporation while keeping the MRPs of most of the liquor brands unchanged and in consonance with the government policy of reducing the consumption of liquor,” reads the order.
Furthermore, the government has also increased the prices of foreign liquor, citing the need to account for rising transportation and other expenses. As per the orders, an increase of 20% or offered rate, whichever is lower is suggested. The assessable value and customs duties shall be reviewed in every subsequent year, while renewing the labels in April. The new prices for foreign liquor will be based on either the price fixed for the new brands or the price supplied by the same brands to neighbouring States, whichever is lower.
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The increase in the purchase price of foreign liquor brands will lead to an increase in their MRP. Also, the price fixed by liquor manufacturers for the new brands or the price supplied by the same brands to the neighbouring States, whichever is lower, will be taken into consideration.
