Maha Govt Hikes Excise Duty on Liquor, Introduces New Category MML
In a move that is likely to impact the liquor industry in Maharashtra, the state cabinet has approved a hike in excise duty on Indian Made Foreign Liquor (IMFL), country liquor, and imported alcohol. The new excise duty rates will come into effect from April 1, 2023. According to officials, the prices of IMFL and premium foreign liquor brands are expected to increase by at least 50 per cent.
The Maharashtra government has also cleared the introduction of a new category called Maharashtra Made Liquor (MML), which will include local liquor brands produced in the state. The MML category is expected to give a boost to local liquor manufacturers and provide an additional source of revenue for the state exchequer.
The decision to hike excise duty on liquor is part of the state government’s efforts to increase revenue and reduce the financial burden on the state. The government is expected to earn an additional Rs 1,500 crore from the hike in excise duty on liquor.
The new excise duty rates will apply to IMFL, which includes popular brands such as Smirnoff, Bacardi, and Johnnie Walker. Country liquor, which is a cheaper and more affordable option, will also see an increase in excise duty. Imported alcohol, including champagne and wine, will also be affected by the hike.
The introduction of the MML category is expected to give a boost to local liquor manufacturers, who will be able to produce and sell their products under this new category. The MML category will also provide an additional source of revenue for the state exchequer, as the government will earn excise duty on sales of MML products.
The MML category will include local liquor brands that meet certain quality standards and are produced in accordance with the laws of the state. The government has set up a committee to oversee the production and sale of MML products, and to ensure that they meet the required quality standards.
The decision to hike excise duty on liquor and introduce the MML category has been welcomed by some, who see it as a move to reduce the financial burden on the state and increase revenue. However, others have expressed concerns about the impact on the liquor industry and the potential increase in prices for consumers.
“The hike in excise duty on liquor is a welcome move, as it will help to increase revenue for the state and reduce the financial burden on the state,” said a government official. “The introduction of the MML category is also a good move, as it will give a boost to local liquor manufacturers and provide an additional source of revenue for the state.”
However, some industry experts have expressed concerns about the impact of the hike on the liquor industry. “The hike in excise duty on liquor will lead to an increase in prices for consumers, which could impact sales and revenue for the industry,” said a liquor industry expert. “The introduction of the MML category is also a risk, as it could lead to a proliferation of low-quality products that could harm the reputation of the industry.”
Despite the concerns, the Maharashtra government is confident that the hike in excise duty on liquor and the introduction of the MML category will have a positive impact on the state’s economy. The government is expected to earn an additional Rs 1,500 crore from the hike in excise duty on liquor, which will be used to fund various development projects in the state.
The Maharashtra government’s decision to hike excise duty on liquor and introduce the MML category is a significant development in the state’s liquor industry. The move is expected to have a significant impact on the industry, and will likely lead to an increase in prices for consumers. However, the government is confident that the benefits of the hike and the introduction of the MML category will outweigh the costs, and will provide a boost to the state’s economy.
