WB revises excise duty on alcohol

The West Bengal government has revised the excise duty structure, introducing a new levy and adjusting existing duties, leading to an average price increase of 5-20 percent for consumers. 

According to a notification dated July 10, 2024, a new duty of Rs 5 per bulk litre has been imposed on extra neutral alcohol (ENA), essential for producing India Made Foreign Liquor (IMFL) like whisky, vodka, and rum. While the excise duty remains at Rs 50 per bulk litre, the additional excise duty has slightly increased. 

 The number of declared price slabs per case (9 litres) has been reduced from 17 to 15, with the Rs 0-649 and Rs 650-699 slabs removed. The additional excise duty for the remaining slabs has increased by 0.75 to 5.08 percent, except for the Rs 0-799 slab, which saw a decrease of 8.3 percent. For beer, the number of declared price slabs and the excise duty remain unchanged, but the additional excise duty has increased by 4-40 percent for both strong and mild beer. 

The strong beer segment will see an increase of 20-30 percent, and the mild beer segment by up to 40 percent. 

 The Maximum Retail Price (MRP) of liquor in West Bengal is influenced by several factors, including declared price, excise duty, additional excise duty, registration fee for production, distributor margin, wholesaler margin, retailer margin, and a special purpose fee aimed at promoting responsible drinking.