Liquor Price Hike: Indian and foreign liquor bottles have become expensive, know the price of 180ml bottle
Liquor Price Hike: The Maharashtra government has increased the tax on liquor, due to which the prices of Indian and foreign liquor have increased by 40%. IMFL, Indian and premium brands have all become expensive. This will affect the earnings of companies, but the shares of beer-wine companies have risen.
Liquor Price Hike: The Maharashtra government has increased the tax rates on liquor. Due to which a sharp rise is being seen in the retail prices of liquor. This is affecting the sale of liquor, the earnings of companies and the pockets of consumers.
How expensive will liquor be now
After the new tax slab issued by the state government, the retail prices of liquor have been fixed like this (for 180 ml)
- Country liquor – ₹80
- Maharashtra Made Liquor (MLL) – ₹148
- IMFL (Indian Made Foreign Liquor) – ₹205
- Foreign premium brands – ₹360
That is, now even a normal drinker will have to spend more money for his favorite bottle.
Big change in excise duty
Under the new decision, the excise duty on foreign liquor made in India has been increased from 3 times to 4.5 times the cost. There has been a direct increase of one and a half percent on IMFL, while the tax on desi liquor has been increased from ₹ 180 to ₹ 205 per bulk liter. However, liquor made in Maharashtra has been kept out of this tax hike, which has given relief to local manufacturers.
EPS pressure will fall on liquor companies
This tax hike will not only affect the customers but will also affect the earnings and profits (EPS) of liquor companies. Maharashtra’s share in the total sales of United Spirits is about 20-22%. According to experts, EPS may fall by 6-8%. Maharashtra’s contribution to the total sales of Radico Khaitan is 7-8%, which is estimated to have an impact of 2-3% on EPS.
Shares of beer and wine companies rocket
- Meanwhile, shares of some companies saw a sharp jump, especially those making beer and wine.
- Shares of GM Breweries Ltd rose by 20% and reached ₹ 852.60.
- Shares of Sula Vineyards Ltd saw a jump of 13% and went up to ₹ 335.45.
British beer is cheap, but liquor is expensive in the state
Recently, under the India-UK FTA, import duty on British beer was reduced by 75%, due to which its price was expected to fall drastically. But now due to this decision of the Maharashtra government, the prices of liquor in the local market are going in the opposite direction.
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