Hard on Pocket: Liquor in Maharashtra Bars, Cafes to Become Costlier from Nov 1 | Here’s Why – News18

Liquor served in bars, lounges, and cafes will get costlier in Maharashtra because the state authorities has determined to enhance the Value Added Tax (VAT) by 5 per cent from November 1 for allow room liquor companies. However, the rise in tax charge is not going to have an effect on over-the-counter gross sales at wine retailers.

As per a report in Times of India, a authorities decision relating to the identical was issued on Friday. After this, the whole VAT charge on allow room liquors will probably be a complete of 10 per cent.

Notably, there will probably be no rise for liquor companies in star inns as they’re already paying larger VAT. Currently, the VAT imposed on the liquor companies at star inns stands at 20 per cent.

Talking concerning the rise in the VAT charge, hoteliers have been quoted as saying in the report that the surge in license charges lately by the federal government has already added to their burden because it made the liquor costlier for shoppers.

“The increase is quite surprising as the same in the backdrop of the increase in the yearly excise fees will mean that prices in restaurants, and bars will go up. We are in an age where states are competing with each realising the power of tourism in driving economies resulting in a reduction of excise duties. Goa, Chandigarh and Haryana are a few such examples,” the information publication quoted Pradeep Shetty, president of inns and eating places of western India (HRAWI), as saying.

TOI quoted some sources inside the business as saying that the choice to enhance VAT is probably going to drive prospects towards extra reasonably priced alternate options like off-premise consumption, akin to on constructing terraces, parks, seashores or parked automobiles.

The shift in the buyer sample is not going to solely consequence in lack of enterprise for the bars and eating places but additionally can pose critical challenges to regulation and order conditions in addition to drink and drive.

Apart from this, the state authorities can be contemplating implementing a brand new excise coverage that hyperlinks pricing to the alcohol content material of drinks and permits the sale of bottled liquors in bars and allow rooms, media experiences urged.

Liquor Prices Rise In Gurugram

Last month, it was reported that liquor costs in Gurugram have risen after shortages of widespread manufacturers in Delhi. The scarcity of liquor in Delhi was due to the town’s controversial excise coverage and the rejection of sale licenses for main corporations. And the absence of main manufacturers from Delhi’s liquor market allowed retailers in Gurugram to increase costs.

According to a report by Hindustan Times final month, the liquor distributors had stopped providing reductions and affords as prospects in Delhi turned to Gurugram to buy widespread alcohol manufacturers.