The ongoing debate surrounding the price and quality of liquor purchased from army canteens versus general shops has left many puzzled. While there is a noticeable price disparity between the two sources, the reasons behind this difference often remain misconstrued. A common misconception is that the quality of liquor in army canteens surpasses that found in ordinary stores, but this is not entirely accurate.
The key distinction between liquor available in general shops and army canteens lies in its distribution process. Liquor brands produce their beverages in distilleries without designating them exclusively for either the civilian or military markets. Once the liquor is prepared, it is distributed to various sectors, including the armed forces. This means that the same type of alcohol, whether it’s whiskey or another variety, is used in both sectors to ensure consistent alcohol content.
One of the primary drivers behind the lower liquor prices in army canteens is the tax exemptions extended to army officers. Army personnel, falling under the Central Government’s jurisdiction, are typically subject to various taxes, including Central Taxes, Income Taxes, Service Taxes, VAT (Value Added Tax), and more. Conversely, army canteens benefit from specific tax privileges, enabling them to offer liquor at reduced prices. The rate of VAT tax, which contributes to varying liquor prices, differs from state to state, with some states imposing a 0% VAT rate, while others apply a 4% tax. Additionally, select states provide a noteworthy 50% discount on liquor purchased from army canteens.
In conclusion, the price disparity between liquor obtained from army canteens and general shops predominantly stems from the tax exemptions and discounts available to army canteens. The fundamental quality of the liquor remains consistent, as it is crafted using identical alcohol for both civilian and military markets. A comprehensive understanding of these factors dispels misconceptions regarding the price and quality disparities associated with liquor procurement from different sources.
