A scarcity of Indian made foreign liquor (IMFL) in retail outlets, which persisted for the past three months, is expected to ease soon now that the govt has issued revised excise duty rates.
The shortage was caused by the govt’s plan to revise excise duty slabs, leading to uncertainty among breweries and a halt in production. Breweries are required to pay tax before production and manufacturers were hesi tant since they would have to produce at higher cost and sell at lower prices.
The issue was resolved after the govt finally released new excise duty rates on Saturday. Excise department officials confirmed the revised price list and liquor vendors are optimistic that the supply of IMFL will return to normal within a couple of weeks. “Nearly half of IMFL brands have not been available in the market for the past three months due to uncertainty over the revision of excise duty,” outlet owners said. “Customers had to go without their favourite brands.”
Ramesh D Nayak of Rathna’s Wine Gate in Mangaluru said some premium brands, which draw higher excise duties, are likely to see a price drop, and some brands will see a hike in price. “We have also learnt that beer prices will be hiked soon,” said Nayak.
The price revision is aimed at increasing sales and augmenting govt revenue and align Karnataka’s liquor rates with those of neighbouring states, to plug revenue leaks.
