Rajasthan hikes excise duty on liquor by 10 percentage points

Hit by huge revenue losses due to lockdown, the Rajasthan government has increased excise duty on liquor by 10 percentage points.

The state's finance department issued the orders to amend a notification to increase the duty on Wednesday.

The excise duty on Indian-Made Foreign Liquor (IMFL) bottles having price below Rs 900 will now be 35 per cent instead of 25 per cent and the duty will now be 45 per cent instead of 35 per cent on IMFL bottles having price of Rs 900 or above, according to an official of the state excise department.

The duty on beer was increased from 35 per cent to 45 per cent, he said.

The basic licence fee for sale of Country Liquor and Rajasthan Made Liquor (RML) was also raised.

The state government's revenue has badly affected due to lockdown which was imposed due to corona pandemic and the decision is aimed at collecting additional revenue from excise.