India’s cheapest beer to cost more as Goa hikes duty to curb smuggling into Maharashtra

Even as the country was gradually emerging out of the lockdown, Instagram feeds were flooded with images of people spending extended vacations in Goa or working remotely from the quiet beach destination. Even as celebrations were restricted across most parts of India, Goa was in high spirits as the thirst for beer and whisky trumped that for wine in the state. As prices went up, a pint of beer at Rs 60 became cheaper than fuel and vegetables in the state, but that might change after the government imposes new levies on alcohol.

Will it spoil the party?

India’s cheapest beer is about to be hit with a Rs 12 hike in excise duty introduced by the state government, while hard liquor such as whisky won’t be affected by it. Goan beer may lose the tag of being the lowest priced in the country, because Maharashtra has threatened to slap the control of organised crime act against tourists who bring back cheap alcohol from the state. Although there are concerns about beer sales and tourism being affected by the price rise, the influx of travellers into Goa has only surged despite penalties on drinking on the beach.

Causing bitterness between states?

The number of men drinking beer in Goa is the highest in India at 60 per cent, the hike in excise duty is expected to bog down their spirits as well. But Maharashtra government argues that the 50 per cent price difference between the state and Goa, has led to smuggling of beer for higher profits. This is why Maharashtra’s Excise Ministry is using a serious act such as MCOCA, meant only for grave offences categorised as organised crime, against people who carry even one bottle of beer from Goa. Even the permits issued by Goa to transport liquor is now being rejected by authorities in Maharashtra.

After the recent changes, beer which costs more than Rs 160 per bottle, will now attract a duty of Rs 60 per bulk litre instead of Rs 50 that was imposed earlier.