In the dry Gujarat, liquor sold in permit shops will become dearer from the new fiscal 2018-19 and as result of proposed increase in Prohibition rates the State Government would get additional income of Rs 106 crore.
Though alcohol in any form is banned under Gujarat Prohibition Act, 1949 in the State since its inception in 1960, permission for consumption of foreign liquor is given to various permit holders, foreign tourists in accordance with the prescribed rules under the Prohibition policy.
Presenting an overall surplus budget of Rs 890 crore for the year 2018-19, Gujarat’s deputy Chief Minister Nitin Patel said that the rates of excise duty and other fees were not revised since 1999-2000, hence he proposed to increase present rates of excise duty as well as other fees.
As per the Budget proposal excise duty on Spirit and Wine increased from Rs 100 per proof litre to Rs 300 per proof litre. In the case of Beer the duty will be levied Rs 60 per bulk litre or strong beer and Rs 33 per bulk litre for mild beer. Currently for all types of beer Rs 25 per proof litre duty is applicable.
Patel who holds Finance portfolio along with many other departments also proposed hike in excise duty on foreign liquor being imported in the State by C.S.D. Canteens for military personnel by three times. Transportation fees and Special fees too has been increase three times. Those who would consume imported liquor in the state will have to shell out more as there has been no excise duty or counter veiling duty levied on spirit, wine and beer on imported liquor. Now Patel has proposed to levy special fee on imported from outside India in the state. There would be Rs 500 fee per bulk lire for sales of Spirit and Wine upto Rs 1500. For Rs 1500 to Rs 6000, the fees would be Rs 2000. If the prices will exceed Rs 6000, one would require paying as high asRs 8000 per bulk litre. In case of strong beer and mild beer special fees will be Rs 42 and Rs 33 per bulk litre respectively. As per the budget proposals revenue expenditure is estimated to exceed Rs 1, 34, 600 crore against the revenue receipt of around Rs 1, 40, 600 crore.