The Telangana government has reduced value added tax on domestic wines from 150 to 70 per cent and also their excise duty and countervailing duty, which will bring down the maximum retail price of all pure grape fruit wines in premium category from 35 to 30 per cent and increase the MRP of fortified wines by Rs 5 a bottle.
The tax structure will be further rationalised during approval of revised supplier prices, which is pending with the government, a release of Excise and Prohibition Commissioner R.V. Chandravadan said.
The government decision followed a proposal by the Commissioner on the basis of recommendations of a committee to frame a long-term wine policy and check illegal movement of non-duty paid wines from other States.
It was noted that wine selling rates in Telangana were high compared to other States where the tax structure was consumer-friendly.
The MRP of all pure grape fruit wines in premium category will come down from 35 to 30 per cent