PANAJI: The state government of Goa has increased the excise duty on beer by Rs 10 to Rs 12 per litre. The new measure will be a big blow to the liquor industry in the state. Several reports came out which indicated that Goa will no longer provide alcohol at the lowest rate in the country.

The decision to increase the price of beer comes at a time when the Maharashtra government has banned the transportation of liquor from Goa. Maharashtra had threatened to invoke Maharashtra Control of Organized Crime Act against those bringing liquor from Goa into the state.

Foreign liquor is sold at lower prices in northern states than in Goa. Because of this, the state has registered a drop of 30-40% on sale of foreign liquor. It is reported that this is the reason why the finance department has increased the price of beer. The beer which was available for Rs 30 per litre will now be available for Rs 42. A duty of Rs 60 has been imposed on strong beer with more than 5% alcohol content.

Goa is the leading tourist destination in the country. The cheap price of alcohol is also a reason for Goa’s popularity. Goa also has the lowest tax on alcohol compared to neighboring states Karnataka and Maharashtra. For these reasons, most of the tourists who visit Goa buy bottles of liquor. Feni, Goa's indigenous liquor, has also huge demand. Therefore, it is certain that the liquor policy of the state will cause a heavy loss to the tourism sector.