In a major decision aimed at increasing state revenue, the Maharashtra Cabinet has approved a hike in liquor rates across the state, including Mumbai. The revised rates are expected to generate an additional ₹14,000 crore annually through increased excise duty and taxes.

A key highlight of the new policy is the introduction of a new liquor category called "Maharashtra Made Liquor (MML)", which will be exclusive to manufacturers operating within the state. This grain-based liquor will be a variant of Indian Made Foreign Liquor (IMFL), and manufacturers will be required to register new brands under this category.

The decision follows recommendations from a high-level study group formed under the Department of State Excise to explore strategies for revenue enhancement. The group studied best practices from other states regarding liquor licensing, production, taxation, and enforcement, and submitted its report to the government.

Based on the report, the state has also approved the creation of an integrated control unit powered by Artificial Intelligence (AI) to monitor distilleries, liquor manufacturers, and wholesale vendors. Additionally, a restructured administrative framework for the department has been sanctioned, which includes:

• A new divisional office for Mumbai city and suburbs

• Additional superintendent offices for Mumbai Suburban, Thane, Pune, Nashik, Nagpur, and Ahilyanagar districts

Increased Excise Duty on Liquor

The revised excise structure includes:

• An increase in duty on IMFL (with a declared production cost up to ₹260 per bulk litre) from 3% to 4.5% of the production cost

• Country liquor excise duty increased from ₹180 to ₹205 per proof litre

As a result, the new minimum retail prices (per 180 ml bottle) are:

• Country Liquor: ₹80 (previously ₹70)

• Maharashtra Made Liquor (MML): ₹148

• Indian Made Foreign Liquor (IMFL): ₹205 (previously ₹120–₹150)

• Premium Foreign Liquor/Scotch: ₹360 (previously ₹330)

For example, a 750 ml bottle of IMFL, which currently sells for around ₹650, will now cost approximately ₹850.

Reforms in Licensing and Staffing

The Cabinet has also approved reforms in liquor licensing:

• Sealed Foreign Liquor Sale Licenses (FL-2) and Hotel/Restaurant Licenses (FL-3) can now be operated on a lease basis (Conducting Agreement)

• An additional annual fee of 15% for FL-2 and 10% for FL-3 licenses will be charged

To support these changes and ensure effective implementation, the Cabinet has sanctioned the creation of 1,223 new posts, including 744 new positions and 479 supervisory roles in the State Excise Department.

These comprehensive reforms are part of the government's broader strategy to strengthen the department and increase revenue through systematic regulation of the liquor trade.