The Maharashtra government has approved a significant hike in excise duty on alcoholic beverages, a move that is expected to sharply increase liquor prices across the state. The decision, taken during a recent cabinet meeting, is aimed at boosting the state’s revenue amid rising fiscal demands.
According to the state excise department, the revised duty structure will result in an increase of 20% to 25% on various categories of alcohol, including Indian Made Foreign Liquor (IMFL), country liquor, beer, and imported brands. The new rates will be implemented in phases starting this month.
Prices of popular alcoholic beverages are expected to rise substantially:
- Country liquor: ₹10 to ₹15 increase per bottle
- IMFL: ₹40 to ₹60 rise per bottle depending on brand and volume
- Beer: ₹10 to ₹20 more per pint
- Premium/imported brands: ₹100 to ₹200 increase per bottle
State officials said the excise hike will generate an estimated ₹2,000 crore in additional revenue annually. A senior excise department official noted that Maharashtra’s alcohol taxes were relatively low compared to states like Karnataka and Delhi, and the revision brings them more in line with national trends.
“This move is intended to strengthen the state’s financial position and fund public welfare projects and infrastructure development,” the official said.
However, the hike has been met with criticism from the hospitality industry and consumers. The Hotel and Restaurant Association of Western India (HRAWI) voiced concerns over the timing of the hike, stating that the industry is still recovering from the impact of the COVID-19 pandemic.
“This decision will affect consumer sentiment and may drive them toward cheaper or unregulated alternatives,” said an HRAWI spokesperson.
Retailers and bar owners echoed these concerns, warning that the increase in prices could lead to a dip in sales and potentially increase illegal cross-border trade from neighboring states with lower alcohol duties.
On social media, the decision sparked widespread reactions from the public. Many consumers expressed frustration over the rising cost of living, while others shared memes and humorous takes on the impact of the hike.
Tourism and nightlife industries in cities like Mumbai, Pune, and coastal regions such as Alibaug may also feel the impact, as rising alcohol prices could affect spending patterns and hospitality revenues.
Despite the opposition, the Maharashtra government is moving forward with the hike, citing the urgent need to increase state revenues without burdening essential sectors.
