Alcohol is likely to become expensive after tax hikes

The Maharashtra government on Wednesday increased the excise tax on alcohol. Country liquor is divided into two distinct categories as branded and unbranded country liquor. A state excise tax will be levied at 220% of the cost of manufacture or 187 per liter, whichever is the highest on branded alcoholic beverages, the government proposed in the state budget. The movement aims to recover a supplement 800 crore, he added.

In addition, value added taxes (VAT) on alcohol were also increased on Wednesday. The VAT prescribed in Annex B of the Value Added Tax Law has been increased from 60% to 65%.

The VAT prescribed in Article 41 (5) of the Law has been reduced from 35% to 40%. Alcohol prices are therefore expected to rise in the Western state.

It is estimated that this will bring additional income of 1000 crore, Maharashtra Finance Minister Ajit Pawar said during the budget.

The Maharashtra government has also offered a 1% stamp duty concession if ownership is transferred exclusively in the name of women.

“On the occasion of International Women’s Day, I am proposing a concession of the stamp duty of 1 percent over the prevailing rate exclusively to women, provided that the transfer of ownership of the house or the registration of the deed of sale either in the name of the woman or of the women only, ”he said.

“As a result of this concession, there will be a shortfall of approximately 1,000 crore, ”added Pawar.

Maharashtra Finance Minister Ajit Pawar on Monday presented a budget with a revenue shortfall of 10,226 crore to the State Legislature. While revenue collection for the next fiscal year was estimated at 3.68.987 crore, the revenue expenditure was estimated at 3.79,213 crore. The size of the annual plan is proposed to 1.30,000 crore, the minister said.

The coronavirus pandemic has had an unprecedented impact on the state’s economy, Pawar said, advising that tax revenues according to revised estimates for 2020-21 are expected to be 2,18,263 crore.

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