The Maharashtra government has constituted a committee to look into the decrease in beer sales within the state. To stimulate beer consumption, the government is considering a reduction in excise duty. The state's excise department has formed this committee in response to the drop in revenue resulting from the reduced beer consumption.
Comprising five members, the committee is headed by the additional chief secretary of the state excise department and has been assigned the responsibility of analyzing the beer policies of other states. The committee has been given a one-month timeframe to deliver its findings. The drop in beer sales is primarily linked to the rise in excise duty, which, in turn, has led to a reduction in government revenue.
Moreover, it is worth noting that both foreign and domestic liquors have a higher alcohol content than beer. When evaluating excise duty rates in terms of alcohol content, beer carries a higher tax burden than liquor. The decrease in beer prices has contributed to a decline in consumer demand. The beer industry has conveyed its concerns to the government through a representative.
According to a report of Pune Pulse, It has been noted that other states have experienced revenue growth by reducing the excise duty rate on beer. The study group aims to provide recommendations to the government on the current excise duty rate for beer based on quantity and value. It will also examine the impact of the previous excise duty rate hike on beer consumption and suggest reforms to increase revenue.