The Maharashtra government is considering increasing excise duty on Indian-made foreign liquor (IMFL), so as to create some fiscal space for slashing the tax on petrol and diesel, an official said Wednesday.
The duty on IMFL has not been reviewed since 2013, a senior official of the state excise department said on the condition of anonymity.
"The idea is to increase the excise duty on IMFL, especially on the largely consumed mid-segment liquors, so that government would earn more revenue. Then we can reduce taxes on petrol and diesel and counter the criticism (of soaring fuel prices), he said.
The excise duty on beer was increased in 2017 while that on country liquor and military canteen liquor was hiked in 2015, he said.
When contacted, Valsa Nair-Singh, Principal Secretary of state excise department, said, "The file (proposal to review duty on IMFL) has not come to me yet. I cannot comment on it."
She, however, confirmed that the excise duty on IMFL has not been reviewed since 2013.