Trafficking increased due to different taxes on alcohol, know what is the solution

News India Live, Digital Desk: The matter of implementing the principle of ‘One Nation One Tax’ in the country has been going on for years, but the heavy inequality of tax of different states on liquor remains even today. According to the Times of India report, a bottle of liquor is sold for Rs 100 in Goa, while in neighboring Karnataka, the same bottle is sold for Rs 305, Telangana for Rs 229, and in Rajasthan for Rs 205.

The main reason for this is the state -wise excise duty and tax on alcohol, in which Goa is the lowest (55%) and Karnataka is the highest (80%) tax. This is the reason why the famous black label whiskey is Rs 3,310 in Delhi, Rs 4,200 in Mumbai, and about Rs 5,200 in Karnataka.

Despite the implementation of GST, there is no uniformity in tax on liquor. Due to this, smuggling of alcohol is increasing. People of Delhi, from Haryana, people from Tamil Nadu buy liquor from Puducherry, causing losses to more tax states.

Compulsion of states

States have limited earning options after GST is implemented, so they depend on excess duty on alcohol and VAT on petrol and diesel. Due to free schemes, tax income becomes a major means for the states to meet the deficit.

Experts suggestions

International Spirits and Wine Association of India (ISWAI) CEO Sanjeet Padhi suggests that by rationalizing tax, customers will buy better quality liquor, which will increase the state’s income in a long time. Maharashtra and Karnataka have first set a successful example of higher earnings by reducing tax.

Deepak Roy of the Confederation of Indian Alcoholic Beverages Industry (Ciabc) believes that uniform tax policy is necessary to promote the industry and prevent smuggling.

What is the solution?

States can get more benefit in the long term by making tax rational and uniform. This will reduce smuggling, boost the industry, and customers will also get quality liquor at a reasonable price. This can make the ‘One Nation One Tax’ principle successful.

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