Maharashtra Excise Duty Shift: Beer Wins, Whisky Loses?

The Maharashtra government's decision to raise excise duty on IMFL while maintaining current beer taxes has been welcomed by the Brewers Association of India. The BAI argues that this adjustment corrects an imbalance in tax structures and could spur growth in the beer sector after a decade of stagnation.

The Maharashtra government has decided to increase excise duty on Indian-made foreign liquor (IMFL), drawing mixed reactions from the alcohol industry. The decision comes while maintaining the current tax structure for beer, a move seen positively by the Brewers Association of India (BAI).

BAI lauded the decision, highlighting the current high tax regime on beer in the state compared to other regions. According to BAI Director General Vinod Giri, the adjustment not only aligns the tax rates more fairly but also opens avenues for growth in a previously stagnant beer sector.

Critics, however, argue that the move favors beer over spirits, prompting the Confederation of Indian Alcoholic Beverage Companies to prepare a formal response. The tax shift intends to bolster state revenues, but its broader implications for the market remain closely watched.

(With inputs from agencies.)