Maharashtra’s excise department has registered an 18 per cent rise in revenue in the financial year 2025–26, driven by higher liquor prices and stricter enforcement measures aimed at curbing illegal trade.
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Excise duty hiked across multiple liquor segments
According to senior officials, the department’s total revenue reached Rs 48,000 crore, marking an increase of around Rs 5,000 crore compared to the previous year. The growth follows a series of policy changes introduced by the state government, including a substantial hike in excise duty across various categories of liquor.
Senior Officials said the government last year revised duty structures differently for multiple liquor segments, while simultaneously tightening surveillance on transportation and distribution. Enhanced monitoring and enforcement helped curb bootlegging and hooch production, leading to improved compliance and higher legal sales.
Crackdown on smuggling from Daman, Diu and Goa
Liquor production in the state also saw an uptick, rising from 1.14 crore litres to 1.20 crore litres, indicating sustained demand despite increased prices. “The rise in production reflects stronger demand as well as better regulation of the sector,” an official noted.
The crackdown extended to inter-state smuggling routes, particularly from neighbouring regions such as Daman, Diu and Goa. Increased vigilance and a higher number of raids contributed to reducing illegal inflow and boosting the sale of liquor manufactured within Maharashtra. The state currently has around 100 locations where liquor sale and consumption remain completely prohibited.
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In June last year, the government had raised excise duty on Indian-made foreign liquor (IMFL) by over 50 per cent, resulting in a retail price increase of more than 60 per cent. Duties on country liquor and imported premium liquor were also increased by 14 per cent and over 25 per cent respectively, while beer and wine were kept outside the tax hike.
The government had projected a sharp rise in excise collections following the revisions, targeting Rs 57,000 crore in FY 2025–26, up significantly from Rs 43,620 crore in the previous fiscal.
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