Alcohol drinkers in Uttarakhand are set to face another setback starting December 15th. The state government has made a major amendment to its excise policy for 2025-26, reinstating 12% value-added tax (VAT) on excise duty. This decision will increase liquor prices in the state by ₹40 to ₹100 per bottle.
Excise Commissioner Anuradha Pal stated that after receiving the government order, a timeline has been set to implement the revised rates in a transparent manner. The department received a request for a week’s time, which has resulted in a deadline of December 15th to complete the process of implementing the new rates.
It is noteworthy that the Excise Department removed VAT from excise duty while formulating the policy for the financial year 2025-26, citing the absence of VAT on excise duty in the neighboring state of Uttar Pradesh.
This step was taken to make Uttarakhand’s policy competitive with other states and to stop illegal liquor smuggling. The state’s finance department strongly objected to this step. Due to the objection of the finance department, VAT is going to be added again on the excise duty.
After this, there will be an increase of Rs 10 on a pouch of country-made liquor and Rs 40 on a bottle. At the same time, the price of bottles of foreign liquor will increase by Rs 100. Let us tell you that the prices of liquor in Uttarakhand are already higher than in the neighboring states of Himachal, Haryana, Uttar Pradesh.
