Liquor to be cheaper in Himachal

India Business
Liquor to be cheaper in Himachal
By IANS, Feb 20, 2007 - 3:09:59 PM

Shimla, Feb 20 - Himachal Pradesh's decision to switch over to a license system from its existing tender-cum-open vends is set to bring down the rates of liquor here.

Himachal is currently one of the most expensive sellers of liquor compared to other states, largely due to the monopoly of a handful of contractors and also due to heavy excise duty imposed by the government.

Prices of liquor vary all across the hill state due to the monopoly by these contractors.

The new policy - following a late Monday decision by the state cabinet - will bring in hundreds of players into the trade and ensure uniform prices across the state. It will now be mandatory to display the price list and a maximum price.

'According to the new policy, applications will be invited for each vend and allotment will be made through a draw of lots. The objective is to break the hold of liquor contractors and increase revenue,' said a government spokesperson here Tuesday.

'The new policy is expected to increase excise revenue through liquor sales from the present Rs.3 billion to Rs.3.8 billion,' he said.

'The prices of liquor will be worked out on the basis of last year's auction, but the government expects a hike in revenue on the presumption that lower rates of liquor will lead to higher sales. Also, the number of vends could increase,' he added.

However, the prices of liquor will continue to remain higher than that in Punjab as VAT - in Himachal Pradesh is 20 percent compared to 4 percent in the neighbouring state.

The IMFL - quota has been fixed at six million litres and that of the country liquor at 12.5 million litres. The import duty on beer has been reduced from Rs.3 to Rs.2 per bottle and on country liquor from Rs.7 to Rs.5 per litre.