Maharashtra Govt Hike Excise on Beer by 25% To 35%

Cost of Beer in Maharashtra increasing from today as excise duty on Mild and strong beer rise by 25% and 35%. The average price of Mild beer (330ML) rises by Rs 3 and strong by 4.5. Excise duty on beer is calculated on manufacturing cost. The selling price is derived after adding VAT which is 35% in Maharashtra.

Excise official said “Earlier, 150% of the manufacturing cost or Rs 33 per bulk litre, whichever is higher, was the formula for imposing excise duty on mild beer. This has been changed to 175% of the manufacturing cost or Rs 42 per bulk litre, whichever is higher. For strong beer, the previous excise formula was 200% of the manufacturing cost or Rs 60 per bulk litre, which has now been changed to 235 % of manufacturing cost or Rs 80 per bulk litre. Beer prices differ from brand to brand. The figures (cited above) are averages based on back-of-the-envelope calculations. The exact rise for each brand will be known in a day or so.”

The excise hikes on beer will increase the annual revenue of the excise department by Rs 150 crore. The annual sale of beer in Maharashtra is around 33 crore litres. The department’s revenue in the last fiscal was Rs 12,288 crore, which is targeted at Rs 14,000 crore this financial year.