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VAT cut on liquor to check smuggling: Himachal Govt.

SHIMLA: The State Government here has maintained that it had taken the decision to decrease VAT on liquor from 20 per cent to 12.5 per cent in public interest and to check rampant liquor smuggling.

A government spokesman in a statement here on Sunday said there was just zero to four per cent VAT on liquor in the neighbouring State of Punjab, Haryana and Chandigarh

which is resulting in massive smuggling of liquor to the hill State. There was a huge loss of excise duty to the State.

The spokesman claimed that over the years, smuggling of liquor from outside has reached alarming proportions and its share has gone up to at least 30-35 per cent of the total sales in the State.

He said that though most of the instances of smuggling go undetected, a total of 12,000 litres of smuggled liquor was seized in the State during the current year.

He further said that the sale of illicit liquor which is locally brewed has also reached similar proportions taking toll on lives of people since quality and standard of this liquor is always doubtful.

He said that since life of people is repeatedly put to danger and Government cannot be a silent spectator to any hooch tragedy, it has decided to act on both the fronts. He said that on the one hand, the rate of VAT has been reduced from 20 to 12.5 per cent and on the other the license fee has been reduced to bring the price of liquor to comparable level as far as neighbouring States are concerned.

The spokesman further said that the State Government also plans to strengthen the working of multipurpose barriers in terms of staff and induction of appropriate technology to check this menace. He said that appropriate changes in legal framework are also envisaged to make such activities attract deterrent punishment.

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VAT cut on liquor to check smuggling: Himachal Govt.

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