Committee formed to investigate decline in beer sales in Maharashtra

By: Pune Pulse

October 20, 2023 

Pune: The Maharashtra government has established a committee to investigate the decline in beer sales within the state. In order to boost beer consumption, the government is contemplating a reduction in excise duty. The state excise department has formed this committee due to the decrease in revenue caused by the reduced consumption of beer. 

The committee, consisting of five members, is led by the additional chief secretary of the state excise department and has been tasked with examining the beer policies of other states. The committee has been instructed to submit a report within a month. The decline in beer sales can be attributed to the increase in excise duty. This has resulted in a decrease in government revenue. 

Furthermore, the alcohol content of foreign and native liquors is higher than that of beer. When compared based on alcohol consumption, the excise duty rate on beer is higher than that on liquor. The decrease in the price of beer has led to a reduction in consumer demand. The beer industry has presented its challenges to the government through a representative. 

It has been noted that other states have experienced revenue growth by reducing the excise duty rate on beer. The study group aims to provide recommendations to the government on the current excise duty rate for beer based on quantity and value. It will also examine the impact of the previous excise duty rate hike on beer consumption and suggest reforms to increase revenue. The study group has been instructed to conduct a factual analysis of the beer policies of other states and submit a report to the government within a month, outlining the necessary steps to increase revenue.

Madhupriya Dhanwate