Rajasthan has hiked Value Added Tax (VAT) on liquor from 12.5 to 20 per cent in its budget for the current financial year. But the murmurs of protest are the loudest from neighbouring Gujarat which, interestingly, has Prohibition laws in place.

Tourists from Gujarat are demanding a reversal, and looking at the high footfalls from Gujarat, the Government of Rajasthan may give in to the demand if the utterances made by the Rajasthan Tourism Secretary Usha Sharma are an indication.

The number of tourists from Gujarat visiting Rajasthan, especially Mount Abu, has gone up to nearly 90 lakh annually over the years. Besides, a sizeable number of tourists are weekend revellers who go to Mount Abu for fun and a drink or two. But now, despite being big spenders, a sizeable number of them have begun to feel the pinch, as the liquor bill is mostly included in the package charge.

Sharma, who was in the city last week in connection with a tourism road show, said: “The Government of Rajasthan is aware of this situation and it is no secret either that most Gujaratis visit the state for hard drinks.”

Sharma, who took charge as the tourism secretary about two months ago, said the Rajasthan government might now consider revising the VAT rate on liquor.

Komal Vazirani of the Vadodara-based Centaur Travel Service said the lowering of VAT on liquor in Rajasthan is a must, as liquor is the driving force behind most tourists from Gujarat visiting that state.

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