The State Government has reduced the excise duty on imported liquid brands by 50 percent. The reason for this change is to arrest the smuggling and bootlegging of imported liquor brands.
The order in this regard was issued on Thursday. The senior State government officer said 'we have reduced the taxes from 300% to 150%. Now, the call on reduction in prices is to be taken by the liquor companies that are expected to do so on Monday'.
The revenue dipped to Rs 100 crore during 2019-20 and 2020-21. "Also the formula for excise duty was revised earlier. This added a heavy tax burden leading to price rise and ultimately affecting the profit limits and also the volume of sales. With this tax cut we expect the volume and tax revenue to grow further," they added.
They further said, "With this cut we expect the incidents such as people smuggling bottles from Delhi and other states to Maharashtra cities through flights or trains to come down," The new notification will reduce MRP on Imported Whisky by around rs 1500-2000. It will make the liquor rates at par with other states and put an end to their illegal entry into Maharashtra. We will be able to stop non-duty paid liquor sales in the State and prevent the grey market in this sector. ope to double revenue in this sector from Rs 100 crores to 250 crores in one year. Sales will go up from 1 lakh cases annually to 2.5 lakh cases," said principal secretary (excise) Valsa Nair Singh. This will apply to whiskey, rum, brandy, gin, and vodka and not for beer and wine".