|
The state had announced an increase in VAT on liquor to 25% last month. This had created uproar amongst the wine producers of Maharashtra who approached their godfather, Mr. Sharad Pawar, Minister of Agriculture in the Central Government in Delhi . Not only did he make the department see the logic of rolling it back to 20%, he also convinced the state agriculture department to give a subsidy of 16% to them so that the real VAT chargeable came down to 4% from this increased 25%.
The official notification dated August 1 was released yesterday. As it turns out, the department had their hands tied. In their records, they had only two categories of alcoholic beverages, liquor and beer-no wine. So when the VAT was increased on liquor, wine became the hapless victim as it was clubbed with liquor.
Now the rules have been amended to separate wine from liquor. Schedule D of the Maharashtra Value Added Tax 2002, delinks wine from liquor in the Maharashtra Foreign Liquor Rules 1953. This has enabled them to insert a clause 3A which reads, ‘Wines as defined from time to time, in Rule 3 (6)(1) of the Bombay Foreign Liquor Rules 1953 and in rule 3(4) of the Maharashtra Foreign Liquor (Import and Export) Rules 1963’-the VAT is herewith reduced to 20%.
It is the later part of the section which allows the reduction of VAT on the imported wines as well.
Click here for the Notification |