Starting August 14, the cost of beer, Indian Made Foreign Liquor (IMFL), and country liquor in West Bengal will see a significant increase as the state government hikes excise duty. This move is part of the government’s strategy to bolster its finances to fund various social security initiatives.
Consumers in the state will experience a price increase of Rs 20-25 per bottle of beer, Rs 30 for IMFL, and Rs 5 for country liquor. The state aims to boost its revenue through these measures, having previously increased stamp duty for the same purpose.
In the financial year 2022-2023, West Bengal generated Rs 16,266 crore in excise duty, which rose to over Rs 18,000 crore in FY 2023-2024. The government now targets surpassing Rs 20,000 crore in excise revenue to support its extensive welfare programs.
According to administrative sources, the state must allocate Rs 26,000 crore to the Lakshmir Bhandar scheme for financial aid to economically disadvantaged women, Rs 6,500 crore to the Krishak Bandhu scheme for farmers, Rs 10,500 crore to the Jai Bangla pension scheme, and Rs 1,500 crore to the Kanyashree scheme for girls’ education in FY 2024-25.
A senior government official highlighted the financial strain on the state’s budget, which now exceeds Rs 50,000 crore annually due to these social welfare commitments. Additional expenditures, such as payments to puja committees and club-aid, further burden the state’s finances. The government borrowed Rs 73,000 crore in FY 2023-24, with an anticipated loan estimate of Rs 80,000 crore for the current year. To manage these financial obligations, the government has turned to increasing revenue through higher excise and stamp duties.
An official from the state Excise Department explained that the price increase for country liquor was minimal to prevent a surge in its consumption due to the rising cost of beer. Previous efforts to boost revenue by keeping liquor shops partially open on dry days failed to meet expectations, leading to the decision to raise liquor prices.
In addition to excise duty hikes, the government withdrew stamp duty exemptions on July 1. The exemption had been temporarily introduced to mitigate the economic impact of the COVID-19 pandemic and stimulate commercial activities. However, the government has now discontinued the reduced stamp duty and circle rate schemes as of July 1, 2024.
A senior official noted that while the initial reduction in stamp duties led to increased revenue from pending registrations, this growth has slowed in recent years. The government now expects at least Rs 1,000 crore in additional revenue this year from the reinstated stamp duties.
