Liquor to cost more in Maharashtra as cabinet approves hike in excise duty

The Mahayuti government in Maharashtra on Tuesday approved a significant hike in excise duties on liquor and introduced sweeping reforms to tighten control and boost tax revenues — moves expected to generate an additional Rs 14,000 crore annually.

Under the new rates approved by the Devendra Fadnavis-led cabinet, the excise duty on Indian Made Foreign Liquor (IMFL) will increase from three times to 4.5 times the declared manufacturing cost (up to Rs 260 per bulk litre). Country liquor duty will rise from Rs 180 to Rs 205 per proof litre.

Revised minimum retail prices for 180 ml bottles have also been notified:

• Country liquor: Rs 80


• Maharashtra Made Liquor (MML): Rs 148


• IMFL: Rs 205


• Premium foreign liquor: Rss 360

According to a release from the Chief Minister's Office (CMO), a new category — grain-based Maharashtra Made Liquor (MML) — has been introduced and will be produced exclusively by local manufacturers. MML brands will require fresh registrations.

The decisions follow a high-level study of best practices from other states, covering excise duty structures, licensing, and tax collection, the release said.

The cabinet also cleared major restructuring of the State Excise Department: