SF Prep Notes

Maharashtra cabinet raises excise duty on IMFL and country liquor; creates Maharashtra Made Liquor category

On 10 June 2025 in Mumbai, Maharashtra, the state cabinet chaired by Chief Minister Devendra Fadnavis approved higher excise duties on liquor.

Summary

The Maharashtra cabinet, chaired by Chief Minister Devendra Fadnavis, approved on 10 June 2025 a rise in excise duty on Indian Made Foreign Liquor (IMFL) from three times to 4.5 times the declared manufacturing cost (for liquor up to ₹260 per bulk litre), and on country liquor from ₹180 to ₹205 per proof litre. It created a new grain-based Maharashtra Made Liquor (MML) category to be made only by manufacturers in Maharashtra. Revised minimum retail prices for a 180 ml bottle are ₹80 for country liquor, ₹148 for MML, ₹205 for IMFL and ₹360 for premium foreign liquor. The measures are expected to yield about ₹14,000 crore more a year.

Key facts

IMFL duty
3 times → 4.5 times declared manufacturing cost (up to ₹260/bulk litre)
Country liquor
₹180 → ₹205 per proof litre
New category
Grain-based Maharashtra Made Liquor (MML), local manufacturers only
Expected revenue
~₹14,000 crore more a year

Practice MCQs 2 questions

Q1 Advanced

Under the Maharashtra cabinet decision of 10 June 2025, excise duty on IMFL (up to ₹260 per bulk litre) was raised from three times to how many times the declared manufacturing cost?

Show answer

Correct answer: C — 4.5 times

PTI (ThePrint) and The Hindu BusinessLine (CMO statement): IMFL duty was raised from three times to 4.5 times the declared manufacturing cost.

Q2 Advanced

Consider the following statements about the Maharashtra cabinet's excise decisions of 10 June 2025: 1. A new grain-based 'Maharashtra Made Liquor' category was created, to be made only by manufacturers in Maharashtra. 2. Excise duty on country liquor was cut from ₹205 to ₹180 per proof litre. Which of the statements given above is/are correct?

Show answer

Correct answer: A — 1 only

PTI (ThePrint) and The Hindu BusinessLine: the grain-based MML category is for Maharashtra manufacturers only; country liquor duty was raised from ₹180 to ₹205, not cut. So 1 only.

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