KOLKATA: There is growing apprehension in the liquor industry that several popular IMFL brand prices may go up after the proposed tax-structure revision though there is also a buzz about light beer prices coming down. Excise department officials, however, refused to comment on “industry speculation”.
“We are yet to complete the process of calculations and negotiations. Things will become clear only after we finalize the tax structure,” a senior official told TOI on Friday.
Incidentally, the state has decided to abolish the 30% additional sales tax on liquor introduced on April 9 and change the entire excise structure by introducing a slab -based tax based on product value. The new tax structure will be based on ex-distillery price (EDP) and ex-brewery price (EBP). There will be 16 slabs based on declared EBP of beer while for IMFL, there will be 22 slabs based on declared EDP.
“The declared EDP and EBP should not be more than that of other states and, if it is higher, then the company has to justify that according to the new structure,” said a source in the liquor industry.
Sources said the price of some IMFL brands may go even higher than the post-April 9 level when the 30% additional tax was imposed. The price increase could be 9% from current level for rum while for some whiskey brands it would be 20% more than the current level. In the new structure, tax on various IMFL will range from Rs 330 to Rs 4,500, taking excise duty and additional excise duty together. The tax will range from Rs 132 and Rs 690 for strong beer while for mild beer it could range from Rs 106 to Rs 552.
“Lager beer duty would be 25% less than strong beer, so there is a possibility of a price drop for lager beer. There is also a possibility of a price drop for wine,” a liquor industry source said.
Incidentally, in the new policy, distribution margin would be 2.5% while retail margin would be 5.9%.
IMFL and beer industry in the state were facing a major crisis following the Covid-induced lockdown and steep increase in sales tax. For the beer market, there has been an average fall in sales of over 85% while for IMFL, the average fall in sales is around 30% in the months April, May, June and July.
“We are yet to complete the process of calculations and negotiations. Things will become clear only after we finalize the tax structure,” a senior official told TOI on Friday.
Incidentally, the state has decided to abolish the 30% additional sales tax on liquor introduced on April 9 and change the entire excise structure by introducing a slab -based tax based on product value. The new tax structure will be based on ex-distillery price (EDP) and ex-brewery price (EBP). There will be 16 slabs based on declared EBP of beer while for IMFL, there will be 22 slabs based on declared EDP.
“The declared EDP and EBP should not be more than that of other states and, if it is higher, then the company has to justify that according to the new structure,” said a source in the liquor industry.
Sources said the price of some IMFL brands may go even higher than the post-April 9 level when the 30% additional tax was imposed. The price increase could be 9% from current level for rum while for some whiskey brands it would be 20% more than the current level. In the new structure, tax on various IMFL will range from Rs 330 to Rs 4,500, taking excise duty and additional excise duty together. The tax will range from Rs 132 and Rs 690 for strong beer while for mild beer it could range from Rs 106 to Rs 552.
“Lager beer duty would be 25% less than strong beer, so there is a possibility of a price drop for lager beer. There is also a possibility of a price drop for wine,” a liquor industry source said.
Incidentally, in the new policy, distribution margin would be 2.5% while retail margin would be 5.9%.
IMFL and beer industry in the state were facing a major crisis following the Covid-induced lockdown and steep increase in sales tax. For the beer market, there has been an average fall in sales of over 85% while for IMFL, the average fall in sales is around 30% in the months April, May, June and July.
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