Jul 11, 2020

Rs. 1,000 tax on 750 ml of arrack

It is reported that the government levies a tax of Rs.1,000 for a 750 ml bottle of arrack which is sold at a price of Rs.1640.

The Excise Department charges a tax of Rs 830 on a bottle of arrack, while the Inland Revenue Department charges Rs. 120 and VAT is taxed at 28%.

Thus, the price at which a bottle of arrack can be sold duty free, including the profit on production, is Rs. 640.