Reported by The Times of India
Surat: Imported liquor prices at permit shops across Gujarat have risen by 60% to 90% after a change in the calculation of special fees, under a new excise management system, triggering a sharp drop in sales and uncertainty among permit holders and retailers.
The Gujarat govt recently introduced the Liquor and Excise Management System (LEMS) at permit shops. With its implementation, prices of several imported liquor brands have increased significantly. Prohibition officials attributed the increase to a Comptroller and Auditor General (CAG) audit query regarding the calculation of “special fees”.
In the first week of Sep, liquor sales have fallen to around 30% of normal levels.
Mitul Patel, deputy director of the prohibition department, told TOI: “We received a CAG query over the calculation of special fee based on the govt notification. To address the query, we implemented the special fee as suggested by the CAG which may have led to an increase in prices of imported liquor.
The govt will soon form a committee to decide on the formula. Until the committee is formed and a decision is made, the CAG’s suggestions will be implemented.”Under the revised formula, the special fee on 750ml bottles with a basic value of up to Rs 1,500 has been increased from Rs 375 to Rs 1,500.