The excise department is considered very important among the sources of revenue for governments. This is a department that fills the treasury of every government. Governments also do not leave any opportunity to take maximum advantage of it. You can understand it like this: if a liquor brand is Rs 100 in one city, it may be Rs 500 in another town.
Let us know in which state of the country liquor is the cheapest and where people are buying the most expensive liquor. We will also understand what causes the price of the same brand to vary in different states.
The Difference Can Be Up To 5 Times
First of all, let us understand with an example. Currently, if you are buying any brand of beer in Delhi for Rs 130-150, then you can buy the same thing in Goa for Rs 90-100, whereas in states like Karnataka and Maharashtra, you may have to pay up to Rs 200. This difference in liquor prices often goes up to 4-5 times. This means that for liquor available for Rs 100 in one city, you may have to pay up to Rs 500 in another town.
This Is Why The Price Varies
Now, it is essential to know why there is such a difference in liquor prices according to states… The biggest reason for this is tax. All state governments impose separate taxes on liquor. The rates of this tax vary according to the state. Apart from this, excise policies of state governments also contribute.
For example, before the liquor scam case started in Delhi, the new liquor policy was implemented, and at that time, private vendors were offering discounts to people even on MRP. Even though that system has ended in Delhi, it is still in force in many states.
Tax Varies According To States
A report in The Times of India, quoting The International Spirits and Wines Association of India, explains how tax rates differ across states. The association has prepared an MRP index including tax and other factors. Let’s look at this index…
| State | MRP Index | Tax share in MRP |
| Karnataka | 513 | 83% |
| Telangana | 246 | 68% |
| Maharashtra | 226 | 71% |
| Rajasthan | 213 | 69% |
| Uttar Pradesh | 197 | 66% |
| Haryana | 147 | 47% |
| Delhi | 134 | 62% |
| Goa | 100 | 49% |
| Source: The International Spirits & Wines Association of India |
This Is How It Makes A Difference
In this, you saw that the MRP index is lowest in Goa, which means that the cheapest liquor in the country is available in Goa. On the other hand, the MRP index is highest in Karnataka, which means prices are highest there. Understand this with an example. The liquor you are getting for Rs 100 in Goa will cost Rs 134 in Delhi, while in Karnataka, the rate will reach Rs 513.
Liquor Is Cheap In These States Too
Apart from Goa, the tax on liquor is relatively low in some cities/states. For this reason, liquor is available there at lower-than-average prices. After Goa, the cheapest liquor is available in Pondicherry. After that, some names of cheap states in terms of liquor are – Daman and Diu, Punjab, Haryana, and Delhi.
