The Andhra Pradesh Government has increased the prices of various liquor brands and made changes to the VAT (Value-added tax) and ARET (Additional Retail Excise Tax) that are currently imposed on liquor brands in the state. The new prices will be charged as a percentage of the brand’s price, making the taxes equal for all types of liquor. Some brands have seen an increase in price ranging from Rs 10 to Rs 90 depending on the size of the bottle. Popular brands have seen the highest increase in price, while less popular brands have seen a decrease in price.
The ARET will be imposed on Indian-Made Foreign Liquor (IMFL) and foreign liquor brands based on a percentage. If the minimum price of IMFL is less than Rs 2,500, there will be a 250% ARET per bottle. If it exceeds Rs 2,500, ARET will be 150%. The tax on beer will be 225%, wine will be 200%, and foreign liquor will be 75%. The prices of foreign liquor brands have not been revised for a long time, and the increase is necessary due to rising transportation and other expenses.
The new prices will be determined based on the price set by liquor manufacturers for new brands or the price supplied by the same brands to neighboring states, whichever is lower. This will help control the prices and ensure fair treatment for all brands. The increase in purchase price of foreign liquor brands will also lead to an increase in their Maximum Retail Price (MRP).
