Why there are different prices of liquor in different states in India

1. Why There Is Differential Pricing For Liquor In Different States Presented By- MayankMaindola

2. Indian Constitution The Indian Constitution empowers the central government to collect excise duty on range of products. However, products defined as ‘liquor’ has been specifically excluded from such list.

3. Continued In contrast the Indian state governments have exclusive competence to levy excise duties on “ wines & spirits” & determine their rates. It is therefore that each Indian state maintains “a separate system for the taxation on Liquors”.

4. Result There are 28 states & union territories, some of which formulate their own policies for taxation on Liquor, & others operate under policies determined by central government. A limited number of Indian states also maintains a ban on sale of liquor. States which are subjected to sale of liquor are generally subjected to a number of indirect taxes.

5. Continued… And the structure of these indirect taxes varies considerably across the states resulting in overall a new level of taxation. Example : excise duty, special duty, vend fee , import fee, development fee, transport fee, assessment fee, gallonage fee , litterage fee, development fee, octroi, sales tax & vat.

6. Liberal States Maharashtra is the most liberal states of all. Delhi scores the second happening place. Then comes Uttar Pradesh (UP). Karnataka. Kerala Orissa. Punjab Haryana.

7. Thank You All For Listening & now you can ask your questions.