The Maharashtra government increased the state excise duty on Indian-made foreign liquor by over 50%. It will lead to a 60% retail price jump. Duty on country liquor and imported premium liquor has also jumped. It will hike their retail prices by 14% and over 25%. The excise duty on beer and wine has not seen any changes.
₹57,000 crore rise in revenue expected, up ₹14,000 crore from ₹43,620 collected in FY 2024-25.
For the financial year 2025-26, it expects 10% of the estimated revenue receipts of ₹5.60 lakh crore. Beer and wine have been exempted from the excise duty hike. The highest in the country is the retail price of beer, which has a lower percentage of alcohol compared to hard liquor and was thus exempted.
Since a significant chunk of the country’s wineries are in Maharashtra, it is the policy of the state to promote wine. A significant number of farmers who supply grapes for these wineries are also based here.
The government has also introduced a new category called Maharashtra-made liquor (MML), which will also be exempted from the hike. MML brands, made from grains, will cost a minimum of ₹148 for 180 ml, a price that has been strategically kept in the existing price range of IMFL to help MML capture the IMFL market.
The Mahayuti government in January constituted a committee headed by then additional chief secretary Valsa Nair to recommend steps to increase revenue from liquor sales.
IMFL will now attract four and a half times excise duty on the manufacturing cost instead of the existing three times. “This will vary based on the manufacturing price but could lead to a huge hike of over 60% in retail prices,” said an excise department official.
The cost of IMFL currently ranges between ₹120 and ₹150 for 180 ml, which will now go up to a minimum of ₹205. Premium brands currently cost between ₹210 and ₹330. They will cost a minimum of ₹360 for 180 ml. The price of 180-ml bottles of country liquor has gone up to ₹80 from the current price of ₹70.
