Maharashtra Govt Raises VAT on Liquor, Contemplates New Excise Policy

Mumbai: The liquors served in hotels, bars, lounges and clubs will be costlier starting November 1 in Maharashtra as the state government has decided to increase the Value Added Tax (VAT) by 5%. The finance department has issued a notification in this regard which states that the new rate of VAT will be 10% instead of earlier 5% for permit room liquor services.

The state government is also contemplating bringing in a new excise policy wherein the pricing is expected to be linked to the alcohol content of the beverages. Also, the government is contemplating allowing sale of bottled liquors in bars and permit rooms. While the decision to link pricing to alcohol content might render beers cheaper, the government is looking at it as a means to boost up revenue, officials in the excise department said. However, the timeline or other details of the proposed policy are still being deliberated, the officials said.