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  1. United Spirits, Allied Blenders, Radico Khaitan, Tilaknagar Ind, others fall as Maharashtra govt hikes excise duty

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United Spirits, Allied Blenders, Radico Khaitan, Tilaknagar Ind, others fall as Maharashtra govt hikes excise duty

Upstox

2 min read | Updated on June 11, 2025, 09:31 IST

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SUMMARY

The Maharashtra cabinet on Tuesday gave its nod to revenue-boosting transformations in the excise department, including an increase in duty on liquor and creation of new offices and posts.

The excise duty on Indian Made Foreign Liquor, or IMFL, will be increased from three times to 4.5 times the declared manufacturing cost. | Image: Shutterstock

The excise duty on Indian Made Foreign Liquor, or IMFL, will be increased from three times to 4.5 times the declared manufacturing cost. | Image: Shutterstock

Shares of United Spirits, United Breweries (Holdings) Ltd, Radico Khaitan, Allied Blenders & Distillers, and Tilaknagar Industries, among other stocks declined on Wednesday, June 11, after the Maharashtra cabinet approved an excise duty hike on liquor.

Stocks of United Spirits and Allied Blenders and Distillers fell more than 5% on the National Stock Exchange (NSE) at 9:27 am.

Tilaknagar Industries shed 1.36%, while Radico Khaitan descended 1.2%.

In contrast, Som Distilleries shares advanced 4.5% to ₹159.51 apiece on the NSE.

On Tuesday, the Maharashtra cabinet gave its nod to revenue-boosting transformations in the excise department, including an increase in duty on liquor and creation of new offices and posts.

A release from the Chief Minister's Office (CMO) said that a high-level study group explored policies from other states and shared recommendations on state excise duties, tax collection improvements, and licensing.

The cabinet gave its thumbs-up to revamp the department and set up an integrated control cell with artificial intelligence-based monitoring of distilleries and bottling plants apart from wholesale licences. The cabinet also approved the creation of a new divisional office in Mumbai and six additional superintendent (Addl SP)-level offices in Mumbai, Mumbai suburbs, Thane, Nashik, Nagpur, Pune and Ahilyanagar districts.

Additionally, the excise duty on Indian Made Foreign Liquor, or IMFL, will be increased from three times to 4.5 times the declared manufacturing cost (up to ₹260 per bulk litre). On country liquor, it will surge to ₹205 from ₹180 per proof litre.

Maharashtra also introduced a new category – grain-based Maharashtra Made Liquor – which will solely be produced by local manufacturers. To manufacture this liquor, it will need new registrations.

The revised minimum retail prices for 180 ml bottles are ₹80 for country liquor, ₹148 for grain-based Maharashtra Made Liquor, ₹205 for IMFL, and ₹360 for premium foreign liquor.

The price hike is expected to aid an additional ₹14,000 crore per year in excise duties and related taxes.

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