New liquor pricing regime takes effect in U.T., Puducherry government aims to net additional annual revenue of ₹185 crore

New liquor pricing regime in Union Territory leads to substantial hikes in excise duty and licence fees for alcohol.

A new liquor pricing regime that took effect in the Union Territory will see tipplers shell out substantially more for their preferred alcohol, beer and wine brands.

The new rates came into force following the Lieutenant Governor’s assent for the decision taken at a Cabinet meeting chaired by Chief Minister N. Rangasamy in April to introduce steep hikes in excise duty, additional excise duty, special excise duty, and a doubling of licence fee to boost revenue.

According to the hikes in excise duty and additional excise duty on IMFL, beer and wine notified by the Department of Revenue and Disaster Management (Excise), the excise duty on a 750 ml IMFL bottle will increase from ₹10 to ₹47, from ₹3 to ₹11 for 180 ml bottle, from ₹6 to ₹7 for 650 ml bottle of beer, and from ₹13 to ₹26 for a 750 ml bottle of wine.

The Deputy Commissioner (Excise) said the duty increase was expected to generate an additional revenue of ₹185 crore per year for the government.

According to the revised rates, the additional excise duty for ordinary IMFL brands (with a declared price below ₹600 per case) has been raised from ₹100 to ₹110 per proof litre and from ₹115 to ₹125 per proof litre for medium and premium brands (priced at ₹600 or above per case).

Likewise, the duty on wine has been hiked from ₹25 to ₹30 per bulk litre, and from ₹10 to ₹12 per bulk litre for beer.

Accordingly, the new rates for spirituous liquors, liquors whether Indian made, foreign manufactured or imported into the Union Territory, excluding beer, will range between ₹85 and ₹325 per proof litre, between ₹33 and ₹42 per bulk litre for beer and from ₹50 to ₹145 per bulk litre for wine.