Maharashtra: Imported liquor to get cheaper as state cuts excise duty by 50%. 5 points | Mint
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Business News/ News / India/  Maharashtra: Imported liquor to get cheaper as state cuts excise duty by 50%. 5 points
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Maharashtra: Imported liquor to get cheaper as state cuts excise duty by 50%. 5 points

Maharashtra excise duty cut: The reduction in excise duty will apply to rum, brandy, vodka, and gin. However, beer and wine are exempted from the latest order

Maharashtra government said that the excise duty will be reduced from 300% to 150% on imported liquor (HT_PRINT)Premium
Maharashtra government said that the excise duty will be reduced from 300% to 150% on imported liquor (HT_PRINT)

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

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

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

“Reducing excise duty will help in curbing smuggling (of liquor). State is expected to get double revenue from it which is currently at 100 crore annually,"  the Maharashtra government said in a statement.  

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

1. The reduction in excise duty will apply to rum, brandy, vodka, and gin. However, beer and wine are exempted from the latest order.

2. 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%.

3. The excise duty reduction will be applicable to only imported liquor brands bottled and packed in the country of origin, and not to those international brands that are bottled in India.

4. The reduction does not apply to Indian Made Foreign Liquor brands.

5. Still, Maharashtra has among the highest excise duty on imported whisky as compared to its neighbouring states. Goa has the lowest liquor tax rate in the country in order to promote tourism.

 

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Published: 22 Nov 2021, 11:26 AM IST
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