Maharashtra government is likely to hike excise duty on Indian-made foreign liquor to tackle the situation arising due to cut in the prices of petroleum products, reported The Times of India.
Chief minister Devendra Fadnavis is expected to take a decision in the next few days with regards to a cut in fuel prices, said the report.
The state has imposed 25 percent value added tax (VAT) on petrol and 21 percent on diesel, the highest among all the Indian states.
If an additional 10 percent excise duty is imposed on Indian-made foreign liquor, then it will generate about Rs 800 crore more in revenue per year. However, a Re 1 cut in petrol and diesel will lead to a loss of revenue of Rs 500 crore and Rs 1,000 crore per year respectively, TOI reported, citing a government official.
“Devendra Fadnavis will have to decide on slashing the prices of petroleum products in view of discontent among the people over spiraling prices of petroleum products. We are ready with our calculations on mobilization of funds following a hike in excise duty and additional funds required to tackle the financial situation arising out of reduction in prices of petrol and diesel,” the official said, as reported by the paper.
Fuel prices rose for the sixth consecutive day on Tuesday, with petrol prices reaching an all-time high of Rs 91.20 a litre and diesel prices touching Rs 79.89 a litre in Mumbai.
First Published: IST