On Tuesday, the Maharashtra Cabinet approved several measures increasing income in the excise duty, including an increase in duty liqueur. The state excise tax on Indian foreign liqueur (IMFL) increased by more than 50%, which led to a significant increase in retail prices by more than 60%. It has also increased the obligation for rural alcohol and imported premium alcohol, which will increase their retail prices by 14% or more than 25%, HT said.
However, the excise tax on beer and wine did not increase, because the retail price of beer, which has a less alcohol percentage compared to hard alcohol, is one of the highest in the country, the officials said. As far as wine is concerned, the state is governed by the policy of promotion, because the Maharashtra is home to a large part of the country’s winery and a large number of farmers who are supplied by grapes are founded in the region, reported in the report.
The government assumes that a substantial hike will increase their income £57,000 crore, increase £14 000 crore of £43 620 crore collected in FY 2024-25. Expects to contribute to 10% of the projected £5.60 Lakh Crore in total income for the financial year 2025-26.
In an effort to generate revenue to support the tense state treasury and financing populist programs such as Ladki Bahin, along with the benefits for farmers and other communities, the Mahayuti government created a committee led by the then secretary Valsa Nair to propose ways to increase the revenues from the spirits. The committee submitted its report in April and the state cabinet approved its recommendations on Tuesday.
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Changing Price in IMFL
According to the Committee’s recommendations, IMFL will now be subject to consumer obligations, which are 4.5 times the production costs, up to the current rate three times. IMFL official said HT: “This will vary depending on the production price, but it could lead to a huge increase in more than 60% of retail prices.”
Currently prices between £120 and £150 for 180 ml IMFL costs now increase to minimum £205. Premium brands that are currently ranging from £210 to £330 for 180 ml, now starts £360. Meanwhile, the price of 180 ml of a bottle of rural alcohol increased from £70 to £80.
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The government introduced a new category called Maharashtra Liquor (MML), which will be exempt from an increase in duties. Made of grain, mml will be the price at least £148 for 180 ml, the rate deliberately determined in the current IMFL price range, which MML helped compete and capture the share in the IMFL market.
The hike of excise tax on IMFL brands is the first in 14 years. Officials noted that despite the growth, the obligation remains lower than in neighboring countries, such as Madhya Pradesh and Telangana. Another official pointed out that increasing the duty on the rural liqueur was maintained minimal to prevent the shift towards unauthorized alcohol, as a sharper price increase could lead such consumption. “This is also because the last hike was carried out in 2022,” he said.
The expert weighs
“Maharashtra was the most taxed state in the country in terms of this industry. The new decision is likely to worsen the situation. High prices in a particular state lead to alcohol smuggling from less taxed states or neighboring countries.
(Tagstotranslate) liqueur Maharashtra Made
