There is a big update for Liqour lovers. Union Finance Minister Nirmala Sitharaman unveiled Budget 2025 on Saturday, rolling out a bunch of concessions for the public. She made several announcements aimed at taxpayers, including a significant change: individuals earning up to Rs 12 lakh a year will no longer have to pay any taxes.
This move is set to benefit around 20-30 crore working individuals. On another note, the budget didn’t see any hikes in liquor and beer prices. However, drinkers might still face higher costs, and here’s why.
The government has raised excise and customs duties on various items, which could lead to price increases for products like tobacco, alcohol, and beer. The budget has seen tax hikes across multiple sectors, with new import duties introduced as well. Typically, when these taxes fluctuate, it affects product pricing.
This time, instead of lowering import taxes on beer and liquor, they’ve actually gone up. As a result, there won’t be much change in the prices of Indian brands, but foreign brands might get pricier. So, those who enjoy foreign liquor could end up paying more.
What’s Sin Tax?
The impact will also extend to tobacco products, meaning prices for cigarettes and e-cigarettes might rise. However, the government hasn’t increased the Sin Tax, which means beer and liquor prices won’t see a significant jump. Sin Tax is levied on products that negatively affect health, and the government aims to curb their sale by making them more expensive to mitigate societal harm.
Before the budget announcement, the Federation of Hotel and Restaurant Association of India (FHRAI) urged the government to simplify liquor and excise licensing regulations. Now, state budgets are also on the horizon.