Liquor bodies split-up on Maharashtra excise duty hike

Confederation of the Indian Alcoholic Beverage Companies (CIABC) has raised serious concerns over the steep proposed hike in excise duty on Indian Made Foreign Liquor (IMFL), warning of severe consequences to market dynamics, consumer access, and state revenue.

Anant S. Iyer, Director General of CIABC, stated that the hike could push Maximum Retail Prices (MRPs) up by as much as 85 percent, severely disrupting consumer accessibility, especially in the mass-market segment. “This escalation could erode the competitiveness of national brands, encourage a shift to lower-category products, and promote the spread of illicit and unsafe liquor,” he warned. He also highlighted the risk of stock dumping from neighbouring states with lower MRPs, exacerbating illicit trade and reducing legitimate tax collections.

Emphasising that IMFL contributes nearly 60 percent of Maharashtra’s excise revenue and that duty from a single case of IMFL equals that of four cases of beer, he warned that uneven tax treatment between IMFL and beer could distort market dynamics and discourage investment. In this regard, CIABC has urged the government to initiate a stakeholder consultation before finalising the hike, cautioning that the expected ₹14,000 crore revenue boost may not materialise due to falling legal sales and increased smuggling.

On the other hand, the Brewers Association of India (BAI) has welcomed the state’s decision to spare beer from the proposed excise hike. BAI Director General Vinod Giri said, “Excise duty on beer has already increased by 32 percent in the past decade, while IMFL rose just 9 percent, making beer significantly more expensive, sometimes up to 50 percent costlier than IMFL nips.”

Calling beer a "drink of moderation" and globally acknowledged as a socially responsible choice, Giri praised the state for correcting the pricing imbalance. “This decision is not just economically rational but socially responsible too,” he said.

Giri also pointed out that brewers have invested ₹3,500 crore in Maharashtra, employing over 3,500 people. “We are ready to invest more if a conducive regulatory environment is created,” he added.