Latest news with #Maharashtra-made
Time of India
2 days ago
- Business
- Time of India
IMFL prices to rise up to 85% as Maharashtra cabinet approves excise hike; rate on country liquor increased to Rs 205
The Maharashtra state cabinet has approved an excise tax revision, significantly increasing the price of ordinary whisky and rum by Rs 90-100 per quarter bottle, while premium IMFL brands will see a smaller increase of Rs 30-40. M UMBAI: The minimum price of Rs 115 for a quarter bottle (180ml) of ordinary whisky or rum will rise by Rs 90-100 with the state cabinet approving a revision in excise taxes Tuesday. While it is a rise of 78-85% for ordinary Indian-made foreign liquor (IMFL), the hit on the pocket is softer for premium IMFL brands, which will cost Rs 30-40 more that the minimum price of Rs 330 today for a quarter, or a rise of 9-12%. Besides a 14% excise increase for country liquor, the cabinet also approved a rise in the licence fees for permit rooms. Manufacture of a new grain-based foreign liquor, to be called Maharashtra-made liquor (MML), was also approved. The state govt, which has been looking for ways to increase its revenue to fund schemes and election promises like the Rs 1,500 per month Ladki Bahin dole for women, hopes to mop up an additional Rs 14,000 crore with the excise hike. The meeting that cleared the proposals was chaired by CM Fadnavis. A secretary-level study group had been formed to increase the revenue of the excise department. This group studied the best practices and policies in other states and submitted its recommendations and reports to the govt.
Business Standard
2 days ago
- Business
- Business Standard
Sula Vineyards, GM Breweries soar as Maharashtra spares wine and beer from excise duty hike
Shares of Sula Vineyards jumped 13%, while GM Breweries soared 18%, after the Maharashtra government announced a sharp hike in state excise duties, excluding wine and beer from the increase. The state hiked excise duty on Indian-made foreign liquor (IMFL) by over 50%, a move that is expected to push retail prices up by more than 60%. Country liquor and imported premium liquor were not spared either, with their retail prices likely to rise by 14% and 25% respectively. However, in a major relief for consumers and certain manufacturers, beer and wine have been left out of the duty hike. Additionally, the government introduced a new category called Maharashtra-made liquor (MML), which will also enjoy exemption from the revised duties. The policy shift triggered strong buying in stocks with significant exposure to the beer and wine segment. Investors saw this as a positive for companies like Sula Vineyards and GM Breweries, both of which are headquartered in Maharashtra and stand to benefit from the tax break. GM Breweries is engaged in the activities of manufacturing and marketing of Alcoholic Beverages; such as Country Liquor (CL) and Indian made Foreign Liquor (IMFL). It is the largest manufacturer of country liquor in the state of Maharashtra with a sizeable market share. Sula Vineyards is principally engaged in the business of manufacture, purchase and sale of premium wine and other alcoholic beverages.
Mint
2 days ago
- Business
- Mint
Maharashtra: Country, imported premium liquor prices to soar as cabinet approves excise duty hike on IMFL
On Tuesday, the Maharashtra cabinet approved several revenue-enhancing measures in the excise department, including an increase in liquor duty. The state excise duty on Indian-made foreign liquor (IMFL) soared by more than 50%, leading to a significant rise in retail prices by over 60%. It has also hiked the duty on country liquor and imported premium liquor, which will increase their retail prices by 14% and over 25% respectively, HT reported. However, the excise duty on beer and wine has not risen as the retail price of beer, which has a lesser percentage of alcohol in comparison to hard liquor, is among the highest in the country, officials said. When it comes to wine, the state follows a policy of promotion, as Maharashtra is home to a large portion of the country's wineries and a significant number of grape-supplying farmers are based in the region, the report stated. The government anticipates that the substantial hike will boost its revenue to ₹ 57,000 crore, an increase of ₹ 14,000 crore from the ₹ 43,620 crore collected in FY 2024-25. It expects this to contribute 10% of the projected ₹ 5.60 lakh crore in total revenue receipts for the 2025-26 financial year. In an effort to generate revenue to support the strained exchequer and fund populist schemes like Ladki Bahin, along with benefits for farmers and other communities, the Mahayuti government formed a committee in January, led by then Additional Chief Secretary Valsa Nair, to suggest ways to boost liquor revenue. The committee submitted its report in April, and the state cabinet approved its recommendations on Tuesday, the report added. Following the committee's recommendations, IMFL will now be subject to an excise duty that is 4.5 times the manufacturing cost, up from the current rate of three times. An IMFL official told HT, 'This will vary based on the manufacturing price but could lead to a huge hike of over 60% in retail prices.' Currently priced between ₹ 120 and ₹ 150 for 180 ml, the cost of IMFL will now rise to a minimum of ₹ 205. Premium brands, which currently range from ₹ 210 to ₹ 330 for 180 ml, will now start at ₹ 360. Meanwhile, the price of a 180-ml bottle of country liquor has increased from ₹ 70 to ₹ 80. The government has introduced a new category called Maharashtra-made liquor (MML), which will be exempt from the duty hike. Made from grains, MML will be priced at a minimum of ₹ 148 for 180 ml, a rate deliberately set within the current IMFL price range to help MML compete with and capture a share of the IMFL market. The excise duty hike on IMFL brands is the first in 14 years. Officials noted that, despite the increase, the duty remains lower than in neighbouring states such as Madhya Pradesh and Telangana. Another official pointed out that the duty increase on country liquor was kept minimal to prevent a shift towards illicit alcohol, as a sharper rise in price could drive such consumption. "It is also because the last hike was done in 2022,' he stated. "Maharashtra was the most highly taxed state in the country in terms of this industry. The new decision is likely to make the situation worse. High prices in a particular state leads to the smuggling of alcohol from less taxed states or from neighbouring states. At the look of it, I think this decision is far from ground reality and not a good decision,' Indian Express quoted Pramod Krishna, former Director General, Confederation of Indian Alcoholic Beverage, as saying.
Time of India
2 days ago
- Business
- Time of India
United Spirits, United Breweries and other liquor stocks slide up to 6% after Maharashtra hikes excise duties
Shares of liquor companies such as United Spirits , United Breweries , and Allied Blenders and Distillers slipped up to 6% on Wednesday after the Maharashtra government approved sweeping changes to liquor taxation and regulation aimed at boosting excise revenues. United Spirits fell as much as 6.2% to Rs 1,510.35 on the BSE, while United Breweries slipped 1.5% to Rs 2,034.60. Allied Blenders and Distillers also lost ground, declining 4.1% to Rs 426.75. The Maharashtra state cabinet, chaired by Deputy Chief Minister Devendra Fadnavis, on Tuesday approved a significant hike in excise duties on liquor alongside a series of structural reforms to tighten oversight and expand revenue collection. The measures are expected to add approximately Rs 14,000 crore annually to the Excise Department's revenue. Following the cabinet's decision, several liquor companies have reportedly raised prices across categories in the state. This comes as the excise duty on Indian-made foreign liquor (IMFL) with a declared manufacturing value of up to Rs 260 per bulk litre has been revised from three times to 4.5 times the manufacturing value. Similarly, the duty on country liquor has increased from Rs 180 to Rs 205 per proof litre. Consumers across Maharashtra will face higher prices at both retail outlets and hospitality establishments. The minimum retail price for a 180 ml bottle of country liquor has increased to Rs 80 from Rs 70. Indian-made foreign liquor has gone up to Rs 205 from Rs 110–115, while premium foreign liquor now starts at Rs 360, up from Rs 210. A new category, Maharashtra-made liquor, has been introduced, with a minimum price of Rs 148 for a 180ml bottle. Live Events New category, licensing fee hikes approved The cabinet also approved the creation of a new liquor category called Maharashtra-made liquor, which will be grain-based and produced exclusively by Maharashtra-based manufacturers. Producers will need to register new brands under this classification. In parallel, licensing costs for businesses operating in the liquor trade have been revised upward. Sealed foreign liquor retail licences (FL-2) will now incur an additional 15% fee, while hotel and restaurant licences (FL-3) will be subject to a 10% hike. Modernising regulation with AI and expansion To enhance regulatory oversight, the government has established a new divisional office in Mumbai, along with six new superintendent offices across key districts — Mumbai suburbs, Thane, Pune, Nashik, Nagpur, and Ahilyanagar. The organisational revamp includes the creation of 1,223 new posts, comprising 744 fresh positions and 479 supervisory roles. An integrated control room will also be set up, equipped with an AI-based system to monitor liquor manufacturing, distilleries, and wholesale activity across the state. The move stems from recommendations submitted by a secretary-level study group that reviewed policies and best practices from other states. Also read | Maharashtra cabinet gives nod to hike excise duty on liquor, grant statutory status to SC commission ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
2 days ago
- Business
- Economic Times
Liquor stocks like United Spirits, Sula Vineyard in focus as Maharashtra hikes excise duties
Shares of liquor companies such as United Spirits, Sula Vineyard, United Breweries, and Allied Blenders and Distillers are set to be in focus on Wednesday, after the Maharashtra government approved sweeping changes to liquor taxation and regulation aimed at boosting excise revenues. ADVERTISEMENT The Maharashtra state cabinet, chaired by Deputy Chief Minister Devendra Fadnavis, on Tuesday approved a significant hike in excise duties on liquor alongside a series of structural reforms to tighten oversight and expand revenue collection. The measures are expected to add approximately Rs 14,000 crore annually to the Excise Department's revenue. Following the cabinet's decision, several liquor companies have reportedly raised prices across categories in the state. This comes as the excise duty on Indian-made foreign liquor (IMFL) with a declared manufacturing value of up to Rs 260 per bulk litre has been revised from three times to 4.5 times the manufacturing value. Similarly, the duty on country liquor has increased from Rs 180 to Rs 205 per proof litre. Consumers across Maharashtra will face higher prices at both retail outlets and hospitality establishments. The minimum retail price for a 180 ml bottle of country liquor has increased to Rs 80 from Rs 70. Indian-made foreign liquor has gone up to Rs 205 from Rs 110–115, while premium foreign liquor now starts at Rs 360, up from Rs 210. A new category, Maharashtra-made liquor, has been introduced, with a minimum price of Rs 148 for a 180ml cabinet also approved the creation of a new liquor category called Maharashtra-made liquor, which will be grain-based and produced exclusively by Maharashtra-based manufacturers. Producers will need to register new brands under this classification. ADVERTISEMENT In parallel, licensing costs for businesses operating in the liquor trade have been revised upward. Sealed foreign liquor retail licences (FL-2) will now incur an additional 15% fee, while hotel and restaurant licences (FL-3) will be subject to a 10% enhance regulatory oversight, the government has established a new divisional office in Mumbai, along with six new superintendent offices across key districts — Mumbai suburbs, Thane, Pune, Nashik, Nagpur, and Ahilyanagar. The organisational revamp includes the creation of 1,223 new posts, comprising 744 fresh positions and 479 supervisory roles. ADVERTISEMENT An integrated control room will also be set up, equipped with an AI-based system to monitor liquor manufacturing, distilleries, and wholesale activity across the state. The move stems from recommendations submitted by a secretary-level study group that reviewed policies and best practices from other states. Also read | Maharashtra cabinet gives nod to hike excise duty on liquor, grant statutory status to SC commission (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
