Excise minister seeks 70-point VAT cut on liquor

Jharkhand excise minister Yogendra Prasad Mahato has proposed a 70 percentage point cut in the current 75% VAT on liquor, sparking the possibility of reduced prices of high-value branded foreign liquors, people familiar with the development said on Saturday.

- Debashish Sarkar

JAMSHEDPUR: Jharkhand excise minister Yogendra Prasad Mahato has proposed a 70 percentage point cut in the current 75% VAT on liquor, sparking the possibility of reduced prices of high-value branded foreign liquors, people familiar with the development said on Saturday.

"I have sent our proposal to the state Cabinet to reduce the 75% VAT on liquor by 70 percentage points. So, in effect, the VAT will be only 5%, resulting in cheaper liquor prices in the state. It will push demand and boost sales volumes once our proposal is approved by the Cabinet," Mahato told HT on Saturday.