Sikkim Government hiked average 5 percent Ex-Factory Price excise duty in hard drinks and 10 percent in beer per case which will come to effect from 17 June onwards which is 30% less than West Bengal excise duty. Excise Commissioner cum Secretary, Tshering Namgyal Bhutia speaking to Media Gangtok said that the State Government have decided to hike only 5-10 percentage in average based on Ex-Factory Price excise duty to cope the loss in revenue due to outbreak of COVID-19 pandemic and national lockdown.
With imposition of slap on Ex-Factory Price, hard drinkers have to pay 90 percent of excise duty where as light drinks have to pay 85 percent from 75 percent in 2017. During the national lockdown of two months sikkim has lost Rs.17 crore excise duty as compared to the corresponding months of April and May. The Sikkim Government has hike excise duty for the first time after 2017 and have imposed slap this time on hike for all brand of liquors.
60-65 percent of liquors consumption were tourists and only 30-35 were local people are consuming the liquors of which large number of Sikkim made brands are exported to other States. As compare to per bottles, the hike in beer is Rs.3-5 whereas for hard drink brands will ascertain after the consultation with manufacturing companies. During the last fiscal year 2019-20, Sikkim Government had collected excise duty of Rs. 204 crore and with the new hike, the the loss is expected to be recovered by 15 percent, said Shri Bhutia.