Tax on liquor up in Andhra Pradesh yet again

Amaravati: The Andhra Pradesh government has hiked the tax on liquor yet another time abnormally on all brands, including Indian Made Foreign Liquor (IMFL) and beer.

A GO was issued to this effect on Wednesday. Accordingly, all IMFL (other than beer, wine and ready to drink varieties) bottled or packed in the country (excluding toddy and arrack) now attract a 50 percent to 60 per cent hike up to a (basic) price range of Rs 5,000 and 45 percent on liquor that is priced above Rs 5,000.

For liquor up to Rs 400, the hike will be 50 percent, up to 2,500, 60 percent, up to 3,500, 55 percent, up to 5,000, 50 percent. Similarly, on beer bottled and packed in the country and if the basic price is below Rs 200, it would be 50 percent and for a higher brand, the hike in tax would be 60 percent. As a result, wine will have a 35 percent hike and ready to drink brands will have a 50 percent hike.

The government maintains that the hike in taxes is to discourage liquor consumption and to reach the goal of total prohibition by 2024 as promised. However, the liquor sales have not come down in the State despite such hikes in the past.

Liquor sales this year too have recorded a 60 percent rise in terms of revenues and more than 100 percent in terms of volume, compared to the corresponding period last year. The YSRC government has reduced the number of outlets in the State by downsizing them by 33 percent in two phases.