Andhra Pradesh Govt hikes liquor prices, amends VAT, ARET

VIJAYAWADA: The Andhra Pradesh Government has raised prices of various liquor brands and amended the VAT (Value-added tax) and ARET (Additional Retail Excise Tax) which is currently levied on various liquor brands in the State in the form of a fixed component based on their MRP.

Principal Secretary (Excise) Rajat Bhargava released the orders on Friday. Accordingly, the prices would be charged as a percentage of the price of the respective brands. Due to these amendments, all types of liquor brands would be taxed equally. The prices of some brands of liquor had gone up between Rs 10 and Rs 40 for a quarter bottle, Rs.10 and Rs 50 for a half bottle and Rs 10 and Rs 90 for a full bottle.

The prices of the most popular brands increased while there was a decline in price of unsold and unavailable brands. ARET will be imposed on Indian-Made Foreign Liquor (IMFL) and foreign liquor brands on a percentage basis. “If the minimum price of IMFL is less than Rs 2,500, there will be a 250 per cent ARET per bottle. If it exceeds Rs 2,500, ARET will be 150 per cent. Similarly, the tax on beer will be 225 per cent, wine (200 per cent) and foreign liquor (75 per cent),” the orders said.

For instance, if a full bottle of a brand was Rs 570, it would be increased to Rs 590. “One popular brand’s quarter bottle price has increased from Rs 200 to Rs 210. The prices of foreign liquor are not revised for a long time and there is a need to increase the prices in view of a rise in transportation and other expenses,” the orders said.

As per the orders, the price fixed by liquor manufacturers for the new brands or the price supplied by the same brands to the neighboring states, whichever was lower, would be taken into consideration and permission would be given accordingly. Due to an increase in purchase price of foreign liquor brands, the MRP of the respective brands would increase.