The prices of English liquor brands manufactured and bottled in India and country liquor will increase in Himachal Pradesh by an average of about 10 percent with the state government on Monday increasing the ex-distillery price (EDP) of country liquor and IMFS (English Liquor) for the year 2019-20.
The ex-distillery price has been increased by five percent to meet the increased cost of production of the liquor manufacturing plants, Commissioner of State Taxes and Excise Ajay Sharma said here He said it was brought to the notice of the government that the cost of ENA (Extra Neutral Alcohol), the basic ingredient for manufacturing of liquor has increased considerably over the last years. Similarly, the cost of glass bottle packing carton has seen an upward trend in the recent past.
Sharma said that the basic raw materials needed for manufacturing of liquor are taxable under the GST regime whereas liquor is covered under VAT. The taxes imposed under GST cannot be adjusted under VAT due to which the cost of production of liquor has increased. In order to protect the liquor industry in the State, a marginal increase of 5 percent in the ex-distillery prices has been made.
The Commissioner said that there will be no impact on the MRP rates on the beer, wine, cider and the liquor brands manufactured and bottled in foreign countries such as Chivas Regal, Glenlivet and Blue-label etc. However, the effect on the country liquor and English liquor brands manufactured and bottled in India shall be an average increase of about 10 percent. The government exchequer is expected to gain additional revenue of Rs 20-25 crores by this minimal increase.
Sharma said that normally the increase in EDP rates is given at the beginning of the financial year from 1st April every year but the same could not be given due to the implementation of Model Code of Conduct for the Lok Sabha Elections-2019.