In the fiscal year 2023-24, Maharashtra’s excise revenue reached a record high of INR 23,250 crore, primarily due to the tax levied on country liquor in the previous fiscal year. This collection marked an 8% increase compared to the INR 21,500 crore collected in the preceding year.
Officials stated that the 15% tax on country liquor encouraged many consumers to shift to Indian-made liquor (IMFL).
“People who used to consume 180ml bottles of country liquor shifted to lower-end Indian-made liquor (IMFL) of the same volume, as the price difference was only INR 30-40,” said an official.
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Maharashtra generates an annual revenue of over INR 15,000 crore, with the majority coming from Indian-made foreign liquor (IMFL) and beer sales alone.
Industry sources suggested that the tax hike in Karnataka following the assumption of office by its new government last year might have also contributed to the revenue increase.
“The smuggling that previously happened across the region has now shifted towards Karnataka,” according to a source.
Since excise duty is imposed at the initial point of trade, regions with a higher number of factories lead in revenue collection, rather than those with higher consumption rates.
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