While the government is struggling to pay the monthly subsidy to the beneficiaries of Mukhyamantri Ladki Bahin Yojana, the decision to increase the duty on liquor on a large scale with the aim of increasing revenue was taken in a state cabinet meeting on Tuesday.
Except for beer and wine, all other types of liquor will become expensive and the increase in duty will add INR 14,000 crore annually to the state exchequer.
A secretary-level study group was formed to increase the revenue of the excise department. The group submitted a report to the government, and the state cabinet approved the increase in excise duty rates on Tuesday. The state exchequer was expected to collect an annual revenue of INR 43,000 crore through excise duty and sales tax on liquor this year. Now, an addition of INR 14,000 crore is possible.
The excise duty rate on Indian-made foreign liquor with a declared production value of up to INR 260 per bulk liter has been increased from 3 times the production value to four and a half times.
The rate of excise duty on domestic liquor has increased from INR 180 to INR 205 per liter. Hotels and restaurants in the state have been approved for the sale of various sealed foreign liquor. An additional fee will be charged for this.
Henceforth, various sealed foreign liquor sales licenses (FL-2) and licensed rooms, hotel, restaurant licenses (FL-3) can be operated on lease through agreements in the state. Its annual fees have also been increased by 15 percent and 10 percent respectively.
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Approval was given to the revised structure of the State Excise Department and the establishment of an integrated control room of the department. Through this room, distilleries, liquor factories, wholesalers, etc. in the state will be controlled through an AI system.
A new divisional office will be opened in Mumbai city and suburbs and one additional superintendent's office each for six districts - Mumbai suburbs, Thane, Pune, Nashik, Nagpur and Ahilyanagar.
A revised structure of 1,223 posts, including 744 new posts and 479 supervisory posts, was approved to strengthen the department.
The government on Tuesday approved the production of a new type of grain-based foreign liquor, 'Maharashtra Made Liquor'. Only liquor manufacturers from Maharashtra will be able to produce it. Various social organizations had opposed the production of grain-based liquor. There are fears that the grain will be used for alcohol instead of reaching the poor. However, sources say that approval was given for the production of grain-based liquor because the son of a senior government official has a stake in the business.
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