Governor Arnold Schwarzenegger plans to start charging the duty on a drink basis and not bottle bases as it is now- on all alcoholic beverages by five cents a drink beginning Feb. 1. The revenue would be used to fund alcohol abuse and prevention treatment programs. The state defines a drink as 1.5 ounces (appx. 45 mL- between our small and a large peg) of liquor, 12 ounces (355 ml- one reg. bottle is normally 650mL and smaller one is 330mL) of beer or five ounces (about 150 mL- 5 glasses to a std. bottle) of wine.
Here is the rub. The duty is charged for wine produced AND consumed in California as well as wine shipped from-out-of state. This is unlike Maharashtra where the consumer does not pay the duty on the domestically produced wines- at least in theory (currently a matter of dispute in the High Court which has asked the excise department to collect all the back waived off duties since the savings had not been passed on to the farmer). It doesn't affect wine produced in California which is shipped to other states or exported.
The proposal by the governor would raise the tax on wine from the current four cents (Rs.2) for a 750 mL bottle to 29.6 cents (Rs.15). Naturally, the increase would not affect the wines imported into India.
Although increases are proposed on all forms of alcohol, California's wine industry reportedly feels the most threatened. |