Duty hike: Get ready to fork out more for bar bill in Kolkata
Times of India | 5 August 2024
The new rates will come into effect from Aug 14 KOLKATA: Tipplers may have to shell out more for their pegs from Sept at most restaurants, bars and nightclubs across Kolkata that are ready to spike their liquor charges. This is following imposition of an additional excise duty last month that is likely to pull up IMFL and foreign liquor prices by 5%-7% and beer prices to the tune of Rs 20-30 a bottle.
The new price structure will come into effect on Aug 14, but it may not have an immediate impact on liquor prices at restaurants. Most, however, are considering a hike once their existing stocks run out.
While the impact on hard liquor prices could be minimal, beer prices would see a proportionately higher increase, according to Hotel and Restaurants' Association of Eastern India (HRAEI) president Sudesh Poddar.
"Since IMFL and foreign liquor prices will rise less than 10%, the price rise per peg will not be significant. In case of beer, a rise of Rs 20-30 a bottle is substantial and may have an impact on sales. We are waiting for the new prices to come effect and will do an assessment. Since most of us have old stocks that will last several weeks, prices won't change immediately. But a hike is imminent after that. It could come into effect before the pujas," said Poddar, who owns Songhai, MS Bar & Lounge and Manthan.
Liquor prices had dropped sharply at most restaurants in 2022 after a lowering of excise duty.
Park Street restaurants, too, are bracing for a price revision. At Mocambo and Peter Cat, liquor is set to cost more from Sept-Oct. "There won't be an immediate rise but prices will eventually go up. We are not going to charge our customers more till we have the old stocks. New prices may come into effect well before the pujas, though. But it seems the rise won't be sharp enough to pinch pockets," said Mocambo and Peter Cat owner Nitin Kothari.
Oasis on Park Street, too, has enough liquor stocks to last Aug. "Prices of whisky, rum and vodka in the IMFL and foreign liquor categories may have to be revised by Oct. Beer prices may see a jump even earlier since stocks run out fast," said owner Pratap Daryanani.
Bar-B-Q on Park Street, too, will wait till stocks run out. "We are waiting for fresh stocks under the new price structure and will then take a call. There would be an upward revision but we expect it to be reasonably low," said owner Rajiv Kothari.
With beer turning costlier, there could be a shift in preference towards low-end whisky, vodka and even country liquor, said Poddar. "Since prices of liquor less than Rs 800 will not change, a significant section could now move to cheap hard liquor and country spirits. Let us see how this shapes up but the average customer should stick to their existing preferences since the price difference shouldn't be more than Rs 10-15 a peg for liquor priced Rs 800-Rs 1,600 a bottle," added Poddar.