Mumbai, June 12, 2025 — In a move aimed at increasing state revenue, the Maharashtra government has announced a hike in excise duty on Indian-Made Foreign Liquor (IMFL) and country liquor. The revised duty rates came into effect on Tuesday and are expected to generate an additional ₹1,000–₹1,200 crore annually for the state exchequer.
According to the notification issued by the state excise department, the excise duty on country liquor has been raised from ₹190 to ₹220 per litre, while the duty on IMFL has gone up from ₹264 to ₹300 per litre. The hike applies across all categories and brands sold in the state.
A senior official from the excise department stated that the revised rates are part of a broader fiscal strategy to strengthen the state’s financial position without introducing new taxes. “Despite the revision, liquor prices in Maharashtra remain competitive compared to neighbouring states like Karnataka and Telangana,” the official said.
The excise duty on liquor is a major source of revenue for Maharashtra. In the previous financial year, the state earned over ₹20,000 crore from liquor taxes. With the latest hike, officials estimate that the state could see a significant increase in collections during the current fiscal year.
The decision has drawn mixed reactions from stakeholders. Liquor vendors and bar owners have started adjusting retail prices to reflect the revised duty. In urban areas like Mumbai and Pune, the price of popular IMFL brands is expected to rise by ₹20 to ₹30 per bottle. In rural regions, where country liquor is widely consumed, retailers fear that the increased cost may reduce demand.
Consumer rights groups and industry observers have expressed concerns that the hike could lead to increased consumption of illicit liquor, particularly in border districts. There are also fears that the move may adversely impact lower-income consumers who primarily rely on cheaper country liquor.
Despite these concerns, government officials maintain that the hike is essential to address the growing fiscal deficit. The state has been exploring multiple avenues to boost revenue in light of increasing expenditure on infrastructure, welfare schemes, and debt servicing.
This is the first major revision in liquor excise duties since 2021. Officials added that the government would closely monitor the impact of the hike on sales, tax collections, and illegal liquor trade in the coming months.
With the new rates now in effect, liquor shop owners and distributors across the state are working to implement updated pricing. The excise department has also ramped up enforcement efforts to prevent smuggling and ensure compliance with the revised duty structure.
