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    You might contribute to their topline this evening; 4 liquor stocks which bear all brunt, from sin tax to prohibition

    Synopsis

    Couple of weeks back, there was a news report about Karnataka raising excise duty on liquor which made some stocks witness a sharp decline. It was not the first time that in order to raise resources any state government has raised taxes. As the election season approaches, we might see some other states also doing the same. But sometimes, these developments are just short term sentiment dampeners but don't affect long term business, rather they provide an opportunity for both traders and long term investors.

    Liquor is one of the most taxed businesses in the country. A bottle of a particular brand of whisky which cost Rs 400 in one state may cost as much as Rs 1200 in another. State governments don't want to lose their power to tax liquor business, probably that is the reason why it is still out of preview of GST. It is not only in India, but in a large number of countries across the world, liquor is a heavily taxed business. It is a business which
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