Saturday, 04 December 2021

Maharashtra government slashed excise duty by 50% on imported liquor

Maharashtra government slashed excise duty by 50% on imported liquor

Maharashtra government has slashed the excise duty by 50% on imported liquor on Monday. The state government said that the excise duty would be reduced from 300% to 150% on imported liquor. Excise duty is considered on a per-unit basis. Meaning, if you buy 1 liter of alcohol, you pay a fixed excise duty of ₹15.

Maharashtra government earns revenue of about ₹100 crores from the sale of imported scotch annually. The income is expected to increase to ₹250 crores as the deal is expected to go up from one lakh bottles to 2.5 lakh bottles.

The reduction in the duty would also curb the smuggling of scotch from other states and the sale of spurious liquor.

The Maharashtra government said.

"Reducing excise duty will help in restricting smuggling of liquor. State is expected to get double income from it which is currently at ₹100 crore annually,"

Maharashtra government slashed excise duty by 50 on imported liquor 1pixabay image

Read More: Maharashtra govt urged Centre to reduce the gap between two doses of the Covishield vaccine.

All you need to know about Maharashtra's excise duty on liquor

  • The reduction in excise duty will apply to rum, brandy, vodka, and gin. However, beer and wine are exempted from the latest order.
  • With this decision, the price of a 1,000 ml imported liquor bottle like Scotch whiskey, which ranges between ₹5,000 and ₹14,000, will drop by 35-40%.
  • The excise duty reduction will apply to only imported liquor brands bottled and packed in a country of origin and not to those international brands that are bottled in India.
  • The reduction does not apply to Indian Made Foreign Liquor brands.
  • Still, Maharashtra has among the highest excise duty on imported whiskey compared to its neighboring states. Goa has the lowest liquor tax rate in the country to promote tourism.

According to the official authority, the cut in excise duty would help boost declining sales of imported whisky in Maharashtra. The state government has been earning Rs 100 crore each fiscal year since 2019-20, which is half of its revenue in 2018-19 from the sale of imported whiskey. The excise rates were increased in January 2019.

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