Country liquor, IMFL to cost more

SHIMLA: The state government has hiked the ex-distillery price (EDP) on country liquor and IMFL (Indian made foreign liquor) for 2019-20 by 5% to meet the increased cost of production at liquor manufacturing plants.
While there will be no impact on the MRP rates on beer, wine, cider and liquor brands manufactured and bottled in foreign countries, the country liquor and English liquor brands manufactured and bottled in India will get costlier by an average 10%.The government exchequer is expected to gain additional revenue of Rs 20-25 crore by this minimal increase.
Commissioner of state taxes and excise Ajay Sharma said it was brought to the notice of the government that cost of extra neutral alcohol (ENA), the basic ingredient for manufacturing liquor, has increased considerably over the past few years. Similarly, the cost of glass bottle packing carton has seen an upward trend in the recent past.
He said basic raw materials needed for manufacturing liquor are taxable under the GST regime whereas liquor is covered under VAT.