Factors affecting Magic Moment Price

Magic Moments Vodka, produced by Radico Khaitan, is a premium local Indian vodka brand. After two decades of production, it has become known as a popular local drink in India. Its popularity and craze extend beyond boundaries, thanks to its availability in more than eight different flavors. You can find it in almost every corner of India. However, the price of Magic Moments varies from state to state due to several factors, which are described here with facts and figures provided by the Indian government. We have detailed all the key factors for a better understanding of Magic Moments Vodka prices across India (Delhi, Mumbai, Kolkata, Odisha, UP, Goa, Rajasthan).

VAT and Excise Duties

Magic Moments Vodka pricing is heavily influenced by state-level excise duties and taxes, which vary from state to state. These are often referred to as VAT and excise taxes (which the government collects as indirect taxes). Each state government imposes its own set of taxes on alcohol, which can significantly vary. These taxes include:

• Excise Duty: A tax levied on the production and sale of alcohol.
• VAT (Value Added Tax): A consumption tax applied to Magic Moments Vodka whenever value is added at a stage of production and at the final point of sale.

Here is a list of VAT rates and excise duties for various states in India for Magic Moments and other IMFL (Indian Made Foreign Liquor) brands, with detailed numbers.

State	VAT Rate (%)	Excise Duty (₹ per liter)
Andhra Pradesh	25	170
Arunachal Pradesh	20	130
Assam	22	230
Bihar (Prohibition)	Ban	Banned by Govt
Chhattisgarh	15	120
Goa	22	80
Gujarat (Prohibition)	Ban	Banned by Govt
Haryana	16	240
Himachal Pradesh	18	70
Jharkhand	20	130
Karnataka	17	180
Kerala	20	300
Madhya Pradesh	18	130
Maharashtra	25	300-450
Manipur	20	150
Meghalaya	20	150
Mizoram	20	150
Nagaland	20	150
Odisha	20	150
Punjab	14.5	250
Rajasthan	20	200
Sikkim	20	150
Tamil Nadu	15	250
Telangana	25	200
Tripura	20	150
Uttar Pradesh	20	200
Uttarakhand	20	150
West Bengal	20	250

Distribution and licensing costs

Magic Moments Vodka distribution in India is regulated by the local government and state authorities related to IMFL (Indian Made Foreign Liquor) and other liquors. Each state has its own licensing and distribution network, impacting overall prices.

Import Duty for Inter-State Transport

When Magic Moments is transported from one state to another, import duties may be applied, increasing the overall cost. Currently, Radico Khaitan produces Magic Moments in three states and exports them to 26 states. This is particularly relevant for states with restrictive import policies. Therefore, the price of the drink can vary significantly between the state where it is made and the state where it is supplied. Additionally, it is impossible to distill liquors in all states because suitable temperature and moisture conditions are essential, which also causes Magic Moments prices to vary.

Retail Mark-Up

Retailers in each location add their own margin to the price of Magic Moments, and this can vary based on certain factors:

• Cities have higher retail markups compared to rural areas due to various issues and high rents.
• Premium stores may add a higher markup compared to regular liquor shops.

Government Policies and Regulations

Government policies, including prohibition laws and VAT growth on the sale of Magic Moments, can affect its availability and final price. States with stricter regulations may have higher prices due to limited supply, such as Bihar and Gujarat. In these areas, the black market becomes a top priority. For example, in Bihar, Magic Moments is available at three times the cost compared to Punjab, and sometimes it is impossible to get it at all.

Supply and Demand

Supply and demand also play a role in the price variation of Magic Moments across the states. In states where Magic Moments is highly popular, prices might be higher due to increased demand and limited availability. This is why its price in Mumbai is so high.