Maharashtra Govt Increases Excise Duty On Liquor .

The Maharashtra government has increased excise duty on all liquor, with the exception of wine. This was announced by Ajit Pawar, Deputy Chief Minister and Finance Minister, Maharashtra  yesterday, while presenting a Rs 121,445 crore budget for 2011-12. The state government has also increased taxes on carbonated soft drinks from 12.5 per cent to 20 per cent.

According to a report in The Times of India, the government has decided to change the method of charging excise duty, maximum retail price and minimum excise duty on country liquor, Indian-Made Foreign Liquor (IMFL) and beer, so as to increase the revenue of the state. Besides, the minimum rate of excise duty to Rs 95 per proof litre for country liquor, Rs 240 per proof litre for foreign liquor, Rs 33 per bulk litre for mild beer and Rs 42 per bulk litre for fermented beer have been increased. Also, the government will get the taxes in advance, unlike in the existing structure where it is received after a month or two.

The state government has restructured Value Added Tax (VAT). It has imposed a 25 per cent VAT on MRP for manufacturers and importers. Meanwhile graded restaurants and bars will impose a 20 per cent VAT on the client's bill. But for local bars and pubs, the VAT stands at five per cent.

Source : hospitalitybizindia.com