The Maharashtra government has announced an increase in the excise duty on Indian-made foreign liquor (IMFL) by over 50%. This will apply to all the liquor types like whiskey, vodka, rum, gin and more. However, beer and wine are exempt from this new rule. Read on to know more in detail.
Excise Duty On IMFL Hiked By Over 50%
In a recent move, the Maharashtra government has announced a sharp increase in the state excise duty on Indian-made foreign liquor (IMFL) by over 50%. As per Hindustan Times, this decision will make hard liquor more expensive, with retail prices expected to rise by nearly 60%. The state has also increased excise duty on country liquor and imported premium liquor, which will now become costlier by over 14% and 25% respectively. However, beer and wine have been exempted from this hike for now.
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The Increase In Excise Duty Might Raise The Revenue For The Year 2025-26
According to HT, the government is aiming to boost its revenue to ₹57,000 crore in 2025-26, up from ₹43,620 crore in 2024-25. Officials have stated that the excise duty hike could help generate around ₹5.6 lakh crore in the coming year. Under the new policy, IMFL will now attract 4.5 times the excise duty on its manufacturing cost. An official from the excise department confirmed this and mentioned that the exact retail price would vary depending on the manufacturing cost of the product, but a 60% overall increase is expected. Currently, a 180 ml bottle of IMFL costs between ₹120 and ₹150. This is now expected to rise to at least ₹205.
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Beer and wine have not been included in this new hike. An official explained that beer already has one of the highest retail prices in the country, despite having lower alcohol content as compared to hard drinks. As for wine, the state government continues to promote wine retail, since most of Maharashtra’s wineries and grape farmers are based in the state.
The government has also introduced a new category called Maharashtra-made liquor (MML). This type of liquor, made from grains, will be exempted from the new excise duty hike. It will be sold at a minimum price of ₹148 for 180 ml. Officials have mentioned that this could help MML compete with the IMFL category in the market.
What do you think of this sharp excise duty hike?
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