PUDUCHERRY: Liquor will soon cost more in Puducherry, with the UT government on Wednesday approving a substantial hike in excise duty, additional excise duty, special excise duty and license fees as part of a broader push to generate over Rs 300 crore in additional revenue.
At an extended cabinet meeting chaired by Chief Minister N Rangasamy, the government also cleared a 34% hike in the Guideline Land Rate (GLR) and increases in registration fees for vehicles and property.
The move aims to support the implementation of welfare schemes announced in the recent tax-free budget. The excise department, the second-highest revenue earner for the UT government, will see hikes in excise duty, additional excise duty (replacing VAT), and special excise duty across all categories of liquor outlets, including wholesale, retail, and tourism.
The annual license fee for liquor outlets will double. However, officials said liquor prices will remain lower than those in neighbouring states. The last excise revision was in July 2019. The GLR hike brings rates in line with neighbouring states, marking the first increase since a 25% reduction in 2016-17. All new rates will come into effect after approval by the Lt Governor.