Maharashtra's liquor tax revenue jumps 18% after steep excise duty hikes

Maharashtra’s excise revenue surged by 18 per cent in the financial year 2025-26, reaching Rs 48,000 crore. The rise follows a significant increase in liquor sales, with beer and country liquor leading the growth. State officials attribute the boost to stricter enforcement and higher excise duties imposed last year. In June 2024, the government raised excise duty on Indian-made foreign liquor (IMFL) by over 50 per cent. Similar hikes were applied across other liquor categories. These changes contributed to a total revenue jump of Rs 5,000 crore compared to the previous fiscal year.

The state’s liquor production also climbed from 1.14 crore litres to 1.20 crore litres. Beer sales saw the sharpest rise at 20 per cent, while country liquor grew by around 6 per cent. A crackdown on smuggling from neighbouring Daman, Diu and Goa further reduced illegal trade, pushing more consumers toward legal purchases. Despite the growth, around 100 locations in Maharashtra still enforce a complete ban on liquor sales and consumption. The government now projects excise collections of Rs 57,000 crore for FY 2025-26, up from Rs 43,620 crore in the previous year.

The revenue increase reflects both policy changes and stronger enforcement against illegal trade. With higher excise duties and reduced smuggling, Maharashtra’s legal liquor market has expanded. Officials expect this trend to continue as compliance improves and production grows.