Home / Business and Economy / Liquor Giants Sue Maharashtra Over Tax Squeeze
Liquor Giants Sue Maharashtra Over Tax Squeeze
28 Nov
Summary
- Industry group challenges Maharashtra's steep tax hike on premium liquor.
- ISWAI seeks to strike down policy or join lower tax bracket.
- Maharashtra claims policy will boost investment and revenue.
An industry group, ISWAI, backed by major spirits producers Diageo and Pernod Ricard, has filed a lawsuit against the Maharashtra government. The legal challenge targets recent policy changes that include a sharp tax hike on premium affordable liquor brands and their exclusion from a newly created lower tax bracket. ISWAI argues that these changes unfairly favor state-headquartered manufacturers with no foreign ownership.
The group has asked the Bombay High Court to strike down the policy or to permit companies with foreign investment to participate in the lower tax category. The tax on other premium brands with production costs below ₹260 per litre has dramatically increased from 300% to 450%.
Maharashtra, a significant market for premium liquor, stated that the policy aims to stimulate local investment, employment, and generate substantial annual revenue. The lawsuit highlights ongoing regulatory challenges faced by global liquor companies in India, including payment disputes and antitrust investigations.
