This article is more than 1 year old.

Liquor stocks fall after some state governments hikes excise duty on alcohol

Mini

Liquor stocks fell on Tuesday, in an otherwise strong market after Delhi government hiked excise duty on liquor by 70 percent.

Liquor stocks fall after some state governments hikes excise duty on alcohol
Liquor stocks fell by up to 8.3 percent on Tuesday, in an otherwise strong market after some states sharply increased excise duty on liquor.
Radico Khaitan fell as much as 7.4 percent to Rs 293.3, while United Spirits was down 8.3 percent to Rs 496.3 per share and United Breweries also lost 5.9 percent to Rs 913 per share.
Delhi government was the first to impose a 'special coronavirus tax' of 70 percent. This move was later followed by the Andhra Pradesh government as well. Andhra Pradesh's government also hiked liquor prices by 50 percent, taking the overall price hike to 75 percent.
The total 75 percent price hike will be charged on the maximum retail price or the MRP of the bottle. This would mean that a bottle of liquor costing Rs 1,000 would now cost Rs 1,750. The AP government has strictly imposed the price hike on liquor to discourage people from consuming alcohol.
The Delhi government issued a notification that levied a 'special coronavirus fee' to the tune of '70 percent of the maximum retail price on all categories of liquor sold through retail licensees for consumption 'off' the premises.' This would mean that a bottle of liquor costing Rs 100 would now cost Rs 170.
The decision comes after liquor stores opened on May 4 in the capital as part of the relaxed guidelines related to the ongoing coronavirus lockdown. But as people flocked to liquor stores, Kejriwal warned that the onus of ensuring social distancing would be on individual shopkeepers and that violations would result in the shop being closed or the withdrawal of relaxation for stores to remain open.
In the previous session, these stocks surged up to 7 percent after the government allowed sale in all zones except containment areas with effect from May 4.
The Ministry of Home Affairs declared, "Liquor stores and pan shops will be allowed to function in all zones while ensuring a minimum six feet distance from each other and ensuring that not more than five persons are present at one time at the shop."