Maharashtra Budget 2021: Pawar proposes increase in state excise duty on liquor

Maharashtra Budget 2021-22 was presented by Deputy Chief Minister and Finance Minister Ajit Pawar in the Legislative Assembly on Monday. Pawar made many announcements in the budget. But all eyes were on what would become cheaper and what would become more expensive in the state. 

Maharashtra budget proposed to increase state excise duty on liquor. Pawar has proposed to increase the rate of Value Added Tax (VAT) on the sale of liquor as prescribed in Schedule-B of Value Added Tax Act from the existing 60 percent to 65 percent. He has also propose to increase the rate of Value Added Tax (VAT) on the sale of liquor as prescribed in Section 41 (5) of Value Added Tax Act from the existing 35 percent to 40 percent. ‘’Due to this, the State is estimated to get additional revenue of Rs 1,000 crore,’’ he said.

Ajit Pawar has proposed a tax hike on liquor to meet the state's tax collection objective and economic math. “There are two types of native liquor, branded and non-branded while increasing State Excise Duty to Rs 220 percent of manufacturing cost or Rs187 per proof litre whichever is high on branded country liquor only. Due to this, the State is estimated to get additional revenue of Rs 800 crore.