In a major policy shift aimed at generating ₹14,000 crore annually, Maharashtra Cabinet on Tuesday approved a sharp increase in excise duties across multiple categories of alcoholic beverages. The revised duty structure marks the first such revision since 2011 and is expected to result in a significant rise in retail prices.
Indian-made foreign liquor (IMFL) will see excise duties increase by more than 50%, a move that is likely to push up consumer prices by over 60%, according to a report by HT. As part of the broader reforms, the state has also introduced a new grain-based classification known as Maharashtra Made Liquor (MML), aimed at expanding the excise base.
Officials have described this as one of the most extensive duty hikes in over a decade, with direct implications for consumers as well as the hospitality and retail liquor sectors.
Maharashtra Liquor Duty Hike
The cabinet has also approved higher duties on country liquor and imported premium alcohol, which will raise their retail prices by approximately 14% and over 25% respectively. These changes form part of a broader strategy by the state excise department to increase its revenue collection amid growing fiscal demands.
Beer and Wine hikes excluded: Why?
Beer and wine, however, have been excluded from the duty hike. According to reports, beer, which contains a lower percentage of alcohol compared to spirits, already retails at one of the highest prices in the country. Increasing its cost further would have placed an additional burden on consumers.
Wine, on the other hand, benefits from a more strategic rationale. Maharashtra is India’s wine capital, home to a majority of the country’s vineyards and a large network of grape-farming communities. In a move aligned with its longstanding policy to support local viticulture, the state has opted to continue its efforts to promote domestic wine production and tourism.
Pricing Breakdown:
Under the revised pricing, a 180 ml bottle of country liquor will now cost approximately ₹80, up from the earlier range of ₹60 to ₹70. IMFL prices are expected to rise to around ₹205 for 180 ml, compared to their previous price range of roughly ₹120 to ₹150. Premium brands, which earlier cost between ₹210 and ₹330 for a 180 ml bottle, will now be priced at a minimum of about ₹360.
Steep hike in liquor prices could…
With this revised excise structure, Maharashtra hopes to significantly boost its non-tax revenue stream amid growing fiscal pressures. But critics warn the steep hike in liquor prices could drive consumption underground, revive bootlegging networks, and hit hospitality businesses, still in recovery from post-pandemic disruptions.
The changes come into effect immediately and will be monitored for their impact on both consumer behaviour and state revenues, in the coming months.
