Maharashtra: Enjoying liquor in bars set to become more expensive; here's why

Maharashtra government considers new excise policy to boost revenue and reduce beer prices

Starting November 1, cost of liquor in hotels, bars, lounges and clubs in Maharashtra will rise due to a 5 per cent increase in the Value Added Tax (VAT) announced by the state government.

A bartender making drinks for customers. ( Representative Image/Amal KS / Hindustan Times)

According to a notification from the finance department, the VAT rate for permit room liquor services will now be 10 per cent, up from the previous 5 per cent, news publication Times of India reported.

The report, citing industry sources, said that the increase in VAT on liquor consumed within bars is expected to drive customers toward more affordable alternatives like off-premise consumption, such as on building terraces, parks, beaches or parked vehicles.

This shift in consumer behaviour may pose law and order challenges for the state administration.

Furthermore, the government is considering implementing a new excise policy that links pricing to the alcohol content of beverages and permits the sale of bottled liquors in bars and permit rooms, news website Free Press Journal reported. This decision may lead to reduced beer prices but is primarily aimed at boosting revenue. However, specific details and the timeline for the proposed policy are still under discussion, as per excise department officials, the report added.

Due to ongoing confusion over Delhi's liquor policy and high festive season demand, many popular liquor brands have become scarce in Delhi, resulting in a surge in customers from Delhi and Noida turning to Gurugram. In response to this increased demand, Gurugram's liquor retailers have not only ceased offering discounts and deals but have also raised their prices, often charging up to 33% more than they did just two months ago.

Read the full report here: Gurugram liquor shops jack up prices in windfall over Delhi excise mess

For example, a bottle of Jack Daniel's has increased from ₹1,800 to ₹2,300, and similar price hikes are observed for Black Label, Jameson, and Glenlivet 12. Even beer prices have seen an uptick, with a 330ml bottle of Kingfisher Premium now selling for ₹120, up from ₹90, and Corona priced at ₹200 instead of ₹165.