Liquor prices will not increase in Uttarakhand; the High Court has stayed the government’s decision

Good news for liquor enthusiasts! The Nainital High Court has stayed the increase in excise duty on liquor in Uttarakhand. This means that liquor prices will not increase now.

Liquor prices will not increase in Uttarakhand
The Uttarakhand High Court has stayed the state government’s decision. It is worth noting that the distillery, M/s Indian Glycols Limited, had filed a petition in the High Court. Following this, the Nainital High Court stayed the notification issued by the Dhami government on November 28.

Liquor was to become more expensive in Uttarakhand from December 15
The Dhami government had decided to re-impose a 12 percent VAT on excise duty by amending the Excise Policy 2025-26. This would have led to an increase in liquor prices by Rs. 40 to Rs. 100 from December 15 onwards.

VAT removed from excise duty while preparing the 2025-26 excise policy
It is noteworthy that while preparing the 2025-26 excise policy, the department had removed VAT from the excise duty. At that time, the argument was that since Uttar Pradesh does not levy VAT on excise duty, Uttarakhand also needed to remain competitive, and this would also help curb the smuggling of illegal liquor.

High Court delivers a blow to the government
The Finance Department objected to this move and called the removal of VAT a wrong decision. After strong objections from the Finance Department, the government decided to re-add 12 percent VAT to the excise duty. After the new amendment, the prices of both country liquor and Indian-made foreign liquor were to increase. However, the High Court has now stayed the government’s decision.