In a move set to significantly impact liquor prices across Maharashtra, the state cabinet has approved a hike in excise duty on Indian Made Foreign Liquor (IMFL), country liquor, and imported alcohol. The government also cleared the introduction of a new category, Maharashtra Made Liquor (MML), in a bid to expand the state’s revenue base.
The excise duty on IMFL has been increased by 50 per cent from three times the manufacturing cost to
4.5 times, specifically affecting products with a manufacturing cost of 260 rupees per bulk litre. The duty on country liquor has also gone up from 180 to 205 rupees per proof litre.
The decision is expected to raise the state’s annual excise collection by approximately 14,000 crore rupees. Prices of IMFL and premium foreign liquor brands are likely to increase by at least 50 per cent.