Maharashtra government raises VAT by 5 percent on liquor served in hotels, bars

By: Pune Pulse

October 21, 2023

Pune: Starting from November 1, the prices of liquor served in hotels, bars, lounges, and clubs in Maharashtra will be increased. This is due to the decision made by the state government to raise the Value Added Tax (VAT) by 5%.

As per a notification released by the Finance Department, the new VAT rate for liquor services in permit rooms will be 10%, replacing the previous rate of 5%. Additionally, the state government is contemplating the implementation of a new excise policy that would establish a connection between the pricing of beverages and their alcohol content. There are also discussions surrounding the possibility of allowing the sale of bottled liquors in bars and permit rooms.

Officials in the excise department see the decision to link pricing to alcohol content as a potential way to increase revenue, which may result in lower prices for beer. However, the specific timeline and other details of this proposed policy are still being discussed by the officials.

Madhupriya Dhanwate