Liquor cheaper in Himachal after major tax cut
Shimla : Prices of liquor have fallen sharply in Himachal Pradesh with the state government announcing a 16 percent cut in Value Added Tax (VAT).
"VAT has now been brought down from 20 percent to 4 percent on all categories of liquor. The decision was taken by the state cabinet which met here late Monday," a government spokesman said Tuesday.
The decision comes within a few weeks of the state government deciding to amend the liquor policy by adopting licensing system instead of tender-cum-open liquor vends system.
Earlier, liquor was among the most expensive in Himachal as compared to the rest of the country largely due to the monopoly of a handful of contractors and the heavy excise duty imposed by the state government.
The move has been taken to check smuggling of liquor from neighbouring Punjab, Haryana and Chandigarh where VAT varies between 4 percent to zero.
"In another significant decision, the cabinet also decided to allot 233 un-allotted liquor vends in the state to the Himachal Pradesh Tourism Development Corporation (HPTDC)," the official said.
