25% tax on alcoholic beverages withdrawn

ITANAGAR, 6 Jul: Following a cabinet decision, the tax & excise department has withdrawn the 25 percent tax on alcoholic beverages in the state.

“The tax was levied during 2020 in order to generate additional revenue to meet the unexpected financial burden and expenditure arising out of Covid-19 pandemic,” the department said in a release.

The department, in compliance with the government order, also rationalized the existing slabs by re-calibrating the base price and enhancing the existing rates of excise duty.

“This way, additional revenue of approximately Rs 106 crores is expected to be generated,” Tax, Excise & Narcotics Commissioner Kanki Darang said.

The prevailing excise duty structure has not been revised for more than five years since November 2015, Darang said.