Beer likely to be cheaper in Maharashtra after govt forms group to study excise duty on it

As per an order issued by the state home department, the group has been asked to submit a report after studying the current rate of excise duty levied on beer according to the alcoholic strength as well as value-based method, the previous increase in excise duty on beer and its effect on the revenue balance.

The group has been asked to further make recommendations for the improvements to be made in order to increase the sale of beer and thereby help the government earn revenue from it. the group has been further asked to conduct a fact-finding study of beer policies of other states in line with revenue growth.

The order mentioned that representatives of the beer industry submitted to the government their problems as the excise duty rate on beer is higher than other liquors when compared on the basis of the alcohol content. Also, other states that reduce the rate of excise duty on beer, have benefited in terms of revenue growth.

Setting up a study group to submit recommendations for increasing the revenue of the state through the beer industry was under the consideration of the government that was approved on Thursday.

While additional chief secretary (state excise), will head the committee, other members included commissioner, state excise, deputy secretary (state excise, representative of All India Brewers’ Association and additional commissioner, state excise.

As per reports, compared to other categories of liquor, sales of beer had shown the highest rise in the state in the financial year 2022-23. A total of 3,239.42 lakh bulk litres (LBL) of beer was sold in Maharashtra in the last fiscal, as against 2,328.31 LBL in 2021-22— over 39 per cent growth.

As per statistics of the Maharashtra state excise department, beer was followed by wine, the consumption of which rose by 22.8 per cent to end at 105.78 LBL in 2022-23 against 86.13 LBL the previous fiscal, as per the report.