Maharashtra Considers Reducing Beer Excise Duty to Boost Revenue
Mumbai, 21st October 2023: The Maharashtra state government has convened a study group to explore the potential increase in revenue from reducing excise duty on beer. Following a decline in beer sales, the move aims to evaluate if lower taxes could stimulate consumer demand and improve the state’s income.
If the study yields positive results, beer prices may be reduced, offering relief to consumers and potentially enhancing state revenue.
The creation of the study group follows a decline in beer sales, which had a direct impact on state income. According to industry experts and the Excise Department, reduced taxes could reinvigorate sales. The study group, chaired by the Additional Chief Secretary of the State Excise Department, will deliver its findings within a month. Other members of the group include the Commissioner of State Excise Department and a representative from the ‘India Breweries Association’.
The higher excise duty on beer has led to escalating prices and diminishing sales, thereby affecting the revenue of the state. In contrast, other states that have cut down on beer tax witnessed a spike in sales and subsequent rise in government income. “This study will determine if similar tax reductions could have comparable benefits in Maharashtra,” said a member of the study group.
Beer producers have been vocal about the challenge of declining sales due to higher excise duties. They argue that lower taxes will not only boost consumer demand but also aid in revenue generation. This sentiment is echoed by the Excise Department, which has officially recommended considering the reduction in excise duty.
As the Maharashtra government grapples with declining revenue from beer sales, the formation of this study group marks a significant step toward re-evaluating excise duty policies. The state now waits in anticipation for the group’s report, which could reshape the local beer market and have a lasting impact on state coffers.
