Mumbai, October 19: In a bid to meet the excise target of Rs 15,343 crore for 2018-19, the Maharashtra government may hike excise duty on alcohol. If the government clears the proposal, prices of Indian Made Foreign Liquor (IMFL) are likely to go up by Rs 20-30 per litre in the state. Excise minister Chandrashekhar Bawankule is expected to clear the proposal as the financial situation of the state is deteriorating.

Speaking to a leading daily, a senior bureaucrat said the proposal to hike excise duty on liquor would get clearance in a day or two. He added the state government would generate additional Rs 700 crore per year by hiking excise on alcohol. The state government had last increased excise duty on Indian Made Foreign Liquor in 2013. The bureaucrat said other states annually hike excise duty on liquor and other products. Liquor Home Delivery: Maharashtra Government Takes U-Turn, Devendra Fadnavis Says ‘No Plan For Online Sale of Alcohol’.

“We found that major states annually enhance excise duty not only on IMFL, but all brands to mobilise resources. Maharashtra is the only state that has not enhanced the excise duty since 2013. Our proposal has been accepted by the excise as well as the finance department," he was quoted as saying by TOI. He said the state government could meet just 44 per cent of the excise target of Rs 15,343 crore till September end.

“It appears that the excise department will not be able to mobilise the balance (Rs 8,571 crore) in the next six months. Under such circumstances, the only way to achieve the target is by enhancing the duty on IMFL," he added. A hike in excise duty on alcohol was on the cards when Chief Minister Devendra Fadnavis had proposed to reduce surcharge on petrol and diesel to control the rising fuel rates.

(The above story first appeared on LatestLY on Oct 19, 2018 11:47 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).