The Confederation of Indian Alcoholic Beverage Companies (CIABC) has raised serious concerns over the Maharashtra government’s recent excise duty hike on Indian Made Foreign Liquor (IMFL), warning that the move could backfire economically and fuel illicit trade across the state.
📈 Excise Duty Hiked by Up to 60%, Retail Prices May Soar 85%
The state cabinet’s decision to increase excise duty on IMFL, country liquor, and imported alcohol by 50–60%—the steepest hike since 2011—could push maximum retail prices (MRPs) up by 30–85%, according to CIABC estimates.
“Such an unprecedented escalation in duties poses a serious deterrent to consumer access and could destabilize the legal alcohol market,” said Anant S. Iyer, Director General, CIABC.
🚨 Industry Fears: Smuggling, Downtrading, and Job Losses
CIABC cautioned that the price surge may lead to:
- Sharp decline in legal sales volumes
- Increased smuggling from neighboring states with lower taxes
- Proliferation of illicit and counterfeit liquor
- Downtrading to cheaper, unregulated alternatives
- Loss of employment across the alcohol supply chain
The group also criticized the government’s decision to exclude beer from the duty hike, calling it a distortion of market dynamics and a blow to IMFL competitiveness.
💰 Revenue Goals May Backfire
While the state aims to boost annual excise collections by ₹14,000 crore, CIABC argues that the hike could erode the tax base instead, as consumers shift away from legitimate channels.
🗣️ Call for Stakeholder Dialogue
CIABC has urged the Maharashtra government to pause implementation, initiate consultations with industry stakeholders, and adopt a balanced, data-driven approach to taxation.
