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.
(Mirror)