There is a complete network of tax collection in the country. We pay taxes to the government for everything from food to walking on the road. Even while drinking alcohol. Yes, governments collect tax on the sale of liquor in the name of excise tax. You will be surprised to know that a large part of the revenue of any state comes from the sale of liquor. This is the reason why any government thinks 100 times before taking a decision like liquor ban. In fact, 15 to 30 percent of the state’s revenue comes from the sale of liquor.
Except a few states of the country, most of the states collect heavy taxes on the sale of liquor and fill their treasury. Do you know about the tax on liquor? Do you know how much the government earns by selling one liquor bottle? Let us tell…
Alcohol earns huge income
Sale of liquor is the main source of economy of any state. If we look at the figures, states like Goa, Uttar Pradesh, Karnataka, Maharashtra are ahead in terms of excise collection on alcohol. Excise collection is very high here. Talking about the reports, in 2020-21 the government had earned approximately Rs 1 lakh 75 thousand crore from excise duty. The state of Uttar Pradesh is at the forefront in this matter. In the financial year 2022-23, Uttar Pradesh had collected revenue of Rs 41,250 crore from excise duty.
How much does the government earn from one bottle?
You must be aware of the huge income earned from the excise duty on the sale of liquor. Now you must be wondering, how much money would the government earn if a person buys a bottle of liquor? Actually, in such cases, the government of each state collects different taxes. That is why in some states the same liquor is expensive and in some states it is cheaper. Apart from excise duty, there are charges like special cess, transport fee, label, registration etc. on liquor.
Know the answer
Suppose a person buys a bottle of liquor worth Rs 1000, then it is increased by 35 to 50 percent or even more. That means when you buy a bottle of liquor worth Rs 1000, Rs 350 to Rs 500 go to the government treasury.
Also read: People of which country drink the most alcohol on New Year? You will be surprised to know the name