Maharashtra government in an attempt to reduce the skyrocketing fuel prices the state, might increase the excise duty on Indian-made foreign liquor (IMFL). According to an official, the move would lead to the creation of a fiscal space for reducing taxes on petrol and diesel. However, there has been no increase in the excise duty on IMFL since 2013.
PTI quoted a senior official by saying, “The idea is to increase the excise duty on IMFL, especially on the largely consumed mid-segment liquors, so that government would earn more revenue. Then we can reduce taxes on petrol and diesel and counter the criticism of soaring fuel prices.”