The Maharashtra government has approved a hike in excise duty on liquor in the State. Under the new rates approved by the State government, the excise duty on Indian-made foreign Liquor (IMFL) has been hiked from the present 3 times the production value to 4.5 times the production value.
The excise duty rate on country liquor will increase from ₹180-205 per proof litre.
The excise duty has been hiked to increase the revenue of the cash-strapped State. An expected revenue of ₹14,000 crore annually will be generated through excise duty and sales tax on liquor.
“A secretary-level study group was formed to increase the revenue of this department. This group studied the best practices and policy issues being implemented in other States for increasing liquor production policy, licencing, excise duty and tax collection and submitted recommendations and reports to the government. Accordingly, the excise duty rate on liquor declared to have a production value of up to ₹260 per bulk litre of Indian Made Foreign Liquor (IMFL) will be increased from 3 times the production value to 4.5 times the production value,” Maharashtra Chief Minister’s office said in a statement.
With the increase in excise duty rates and the corresponding changes in the maximum retail price, the minimum retail of 180 ml bottle will be ₹80 for domestic liquor, ₹148 for Maharashtra-made liquor (MML), ₹205 for Indian-made foreign liquor and ₹360 for premium brand of foreign liquor.
With the revised structure, a new divisional office will be set up in Mumbai city and suburbs, and one additional superintendent’s office in each for six districts in Mumbai, Thane, Pune, Nashik, Nagpur and Ahilyangar.
New type
“Approval has been given to manufacture a new type of grain-based foreign liquor, Maharashtra Made Liquor (MML). Only liquor manufacturers in Maharashtra will be able to manufacture this type of foreign liquor. They will be required to register this new type of product (brand) anew. Henceforth, various sealed foreign liquor sales licences (FL-2) and licenced rooms for hotel/restaurant licences (FL-3) in the State will be operated on a lease basis (Conducting Agreement). An additional fee of 15 per cent and 10 per cent of the annual license fee will be charged respectively,” the Chief Minister’s Office stated.