Surprise for Alcohol Enthusiasts: Liquor Prices Set to Rise from November 1
Impact on Liquor Enthusiasts in This State
In this state, liquor enthusiasts have received a significant shock. The state government has announced a 5% increase in the VAT (Value Added Tax) on the sale of liquor in clubs, lounges, and bars starting from November 1. With this, the VAT on liquor will increase from 5% to 10%. However, this increase will not apply to non-counter sales.
Watchful Eyes on the Market
Furthermore, this effect will reflect on the shares of companies involved in the sale of liquor. This impact will be short-lived. The state government has taken this decision to increase revenue. The effect of this will be visible in the stock market starting from Monday. At that time, the market players will need to keep an eye on liquor shares.
Potential Impact on Consumers due to the Liquor Price Hike
According to industry sources, the increase in VAT on liquor can have a slight impact on consumers, depending on the state’s laws and regulations. This decision may affect liquor prices directly or indirectly and can lead to price variations in bars, restaurants, and other establishments where liquor is consumed. It has been stated that this decision could bring more changes in consumer behavior for sales and consumption. On the other hand, the government is also planning to implement a new excise policy, which links prices to alcoholic beverages with materials. Sources suggest that this government decision may potentially lead to a reduction in beer prices.
Significant Revenue Boost for the Government from Liquor Sales
It should be noted that liquor has always been a major source of revenue for the government. A proposal to increase taxes on liquor was suggested in hotels and restaurants that have a rating of 3 stars or lower, resulting in a tax increase from 5% to 10-15%. If this increase is implemented, the government could benefit from an annual revenue increase of 300 to 600 crores of rupees. In addition to liquor, the department has also suggested raising taxes on gold and gold jewelry, as well as unbranded textiles and readymade garments.
