The Hindu Business Line : IMFL, beer will cost more in Sikkim

Currently, a crate of Sikkim-made beer is being sold for Rs 410, which costs Rs 401.28 at the wholesalers level. Earlier retail price was Rs 385 or Rs 390, the wholesale rate being Rs 380.

Gangtok May 29 Sikkim's reputation as a State with the cheapest available alcoholic beverages is over.

Now with the State Government levying an additional educational cess on Indian made foreign liquors (IMFL) and beer manufactured in the State or imported from the other States, a drink will become costlier in the State.

Educational cess

The Sikkim Government has implemented and extended the the Sikkim Educational Cess on Alcoholic Beverages Act, 2007, which was passed by the State Assembly during its Budget session earlier this year.

To Cost more

According to the gazette notification, the cess will be levied and collected on alcoholic beverages at the rate of Rs 2.70 per bulk litre on foreign liquor and Rs 1.60 per bulk litre on beer manufactured in Sikkim and imported from the other States for consumption in the "civil market" and Army units within Sikkim. While the development is being seen by many as a step in the right direction, retailers and consumers are feeling the pinch. Currently, a crate of Sikkim-made beer is being sold for Rs 410, which costs Rs 401.28 at the wholesalers level. Earlier retail price was Rs 385 or Rs 390, the wholesale rate being Rs 380.

Neighbouring States such as West Bengal comprise a huge market for Sikkimese alcoholic beverages because of their low prices. Not only is locally manufactured liquor cheap, even IMFL sold in Sikkim is priced much less than in the rest of the country. Smuggling of liquor from Sikkim to the Darjeeling Hills is a regular feature.

The liquor industry is one of the biggest industries in Sikkim and a major source of revenue for the State.

The Excise Department is one of the single largest revenue earners for the State Government.

There are as many as five distilleries, including one beer brewery, operational in the State.

More Stories on : Breweries | Taxation | Other States

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