Andhra Pradesh brings in revised liquor prices

Andhra Pradesh government has revised the prices of various liquor brands and amended the VAT , ARET (Additional Retail Excise Tax) and assessable value of foreign liquor brands, which are being levied in the form of a fixed component based on the MRP.

Orders for the rationalisation of ARET, VAT, AED/ACD and special margin and revision of assessable value of foreign liquor brands were issued by Principal Secretary (Excise), Andhra Pradesh, Rajat Bhargava, making the new liquor prices effective from 18th November.

The prices of the most popular liquor brands in Andhra Pradesh have been increased, while there has been a decline in the prices of unsold and unavailable brands. The revision has resulted in an increase in the prices of some liquor brands. On the other hand, the prices of certain other liquor brands have decreased in the state.

AERT will be levied at the rate of 250 percent if the minimum price of Indian Made Foreign Liquor (IMFL) is less than Rs 2,500; by 150 percent if IMFL’s price exceeds Rs 2,500; by 225 percent on beer; by 200 percent on wine; by 50 percent on ready to drink (RTDs) and by 75 percent on foreign liquor.

Furthermore, the Andhra Pradesh government has also increased the prices of foreign liquor, citing the need to account for rising transportation and other expenses. The assessable value and customs duties shall be reviewed in every subsequent year, while renewing the labels in April. The new prices for foreign liquor will be based on either the price fixed for the new brands or the price supplied by the same brands to neighbouring states, whichever is lower. The increase in the purchase price of foreign liquor brands in Andhra Pradesh will lead to an increase in their MRP in the state.