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State Government Initiates Study Group to Reduce Beer Prices and Boost Revenue

A New Strategy to Increase State Revenue: Beer Prices Expected to Drop Soon

October 20, 2023: In an innovative move to boost revenue and breathe new life into the struggling beer industry, the state government has established a dedicated study group. This team is tasked with finding ways to make beer more affordable to consumers. As a result, we can anticipate a future where beer prices become more wallet-friendly.

In recent times, the state has witnessed a decline in beer sales, which can be attributed to the increase in excise duty on this popular beverage. This rise in taxes has left consumers with a bitter taste, pushing them away from beer and toward other alcoholic beverages with higher alcohol content. This shift in consumer preferences has resulted in a drop in the state’s beer sales, leading to a corresponding decrease in government revenue.

Comparing the excise duty rates on beer to those on other liquors, it becomes evident that beer is disproportionately taxed, making it more expensive for consumers. This price disparity has deterred potential customers and impacted the state’s financial health negatively. Recognizing the urgent need to address this issue and revitalize the beer industry, the government considered the formation of a study group to propose revenue-boosting solutions.

This study group is composed of key figures, including the State Excise Commissioner, Divisional Deputy Secretary, Upper Commissioner, and a representative from the All India Breweries Association. It operates under the leadership of the Additional Chief Secretary (State Excise) and has been entrusted with the crucial task of suggesting strategies to enhance state revenue through the beer industry.

The state government’s ambitious revenue target for the fiscal year 2023-24, set at nearly ₹25,200 crores, has prompted these bold initiatives. Insider sources within the ministry have revealed that the government aims to enact substantial changes to its liquor policy as part of its revenue-generation plan.

One of the key proposals revolves around introducing license fees for foreign liquor and implementing additional sales taxes. An alternative suggestion is to allow the retail sale of liquor in sealed containers, predominantly within food house license rooms. Moreover, licenses will be selectively granted in geographical areas where sealed retail sales are unavailable. These proposed changes come with the promise of additional license fees, and there is even talk of scrapping the additional sales tax in the license room for food houses.

As these strategic moves take shape, the state government hopes to revitalize the beer industry, make beer more affordable, and ultimately boost its revenue, aiming to achieve the impressive financial goal it has set for itself in the coming fiscal year.


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