Ahmedabad: Gujarat govt’s decision to sharply cut taxes on foreign liquor served in GIFT City has triggered a surge in demand at the two permitted wine-and-dine facilities in the financial hub, sources said. Industry watchers and officials tracking the development said the rising footfall has also prompted national food and beverage players to assess opportunities there. Many of them are expected to firm up plans over the coming months.In two notifications issued last week, the state govt reduced VAT on foreign liquor served in GIFT City from 65% to 25% and removed a special fee of around Rs 240 levied on every 30ml serving. The combined effect has significantly reduced the final price for consumers, leading to an immediate rise in visitor numbers, sources said.Sanjay Kaul, managing director and group CEO, GIFT City, said, “As it continues to evolve as a globally competitive international financial services centre, developing vibrant and well-rounded social infrastructure is as important as strengthening the financial ecosystem. Global investors, institutions and professionals today evaluate destinations not only for business opportunities but also for the overall quality of life and ease of living they offer. Measures that enhance the hospitality and lifestyle ecosystem help make GIFT City a more attractive destination for global businesses and talent. As the ecosystem continues to expand, such developments will complement our efforts to position the place as a world-class financial and business hub that supports both international finance and a high-quality urban experience.”Sources said weekday footfall at the facilities has climbed from about 140 earlier to around 225 a day now. On weekends — Friday to Sunday — daily visitors have increased from about 270 to nearly 450. Average spending per person is now around Rs 750, including food, which sources said was difficult earlier because of the high tax burden and the special fee. “Visitors experienced long waits during peak hours last weekend. Now, one of the facilities is planning to expand its seating capacity,” a source said.Aaryan Shah, associate director, Savvy Group, said, “The move is expected to attract GCCs, tech and finance firms, and food and beverage brands, while supporting plans for CWG 2030 and a possible 2036 Olympics.”A sizeable part of the increased demand is being attributed to professionals from other states working there. “Lower prices have made social outings easier for salaried employees,” said a source. The price reduction is stark for consumers. Earlier, a 30ml drink with a menu price of Rs 100 resulted in a bill of about Rs 561 after adding the Rs 240 special fee and VAT of around Rs 221 at 65%. After the changes, the same drink costs about Rs 125. Similarly, a drink with a menu price of Rs 1,000, which earlier cost around Rs 2,046, now costs about Rs 1,250, sources said.Officials said the policy change aims to align GIFT City’s lifestyle offerings with those of major metros and position it as a globally competitive hub for top-tier talent.“Recent company registrations, along with new commercial and residential developments, are expected to attract finance and tech professionals and boost the business ecosystem there,” a source said.
