Archive · 16 Jun 2025
Maharashtra Alcohol Tax Hike Sparks Industry Concerns
Maharashtra increased taxes on alcohol, making it more expensive.
The alcohol industry is worried this will make people buy less legal alcohol.
They fear consumers will turn to illegal alcohol instead.
The companies are worried about making less money and the state will also make less money in taxes.
They want the government to reconsider this decision.
Maharashtra increased excise duty on IMFL by 50%-60%.
CIABC met with excise officials to discuss the hike.
The industry body warns the hike may reduce sales and state revenue.
MRP of IMFL is expected to increase by 30%-50%.
The move could impact earnings per share for listed liquor companies.
- Who
- Maharashtra government and CIABC.
- What
- Maharashtra increased excise duty on IMFL.
- When
- Last week (decision); meeting on Monday (discussion).
- Where
- Maharashtra.
- Why
- To generate additional revenue for the state (government). Industry fears a decline in legitimate sales.
Maharashtra Government
CIABC
Revenue vs. Market Stability
Maharashtra Government
Increase state revenue.
CIABC
Reduced sales of legal alcohol.
- Excise Duty Hike
- 50%-60% on IMFL
- Industry Body
- CIABC
- MRP Increase
- 30%-50%
- Potential Impact
- Reduced sales, illicit trade, and smuggling
- USL Sales in Maharashtra
- 20%-22%
- Radico Khaitan Sales in Maharashtra
- 7%-8%
- USL EPS Impact
- 6%-8%
- Radico Khaitan EPS Impact
- 2%-3%
