The International Spirits and Wines Association (ISWAI), which represents major global liquor brands such as Pernod Ricard and Diageo, has filed a lawsuit against the Maharashtra government. The lawsuit stems from a significant increase in excise duties, as well as the exclusion of local manufacturers from a newly implemented lower tax category.
A lawsuit has been filed in the Bombay High Court challenging a policy that increases taxes on both premium and affordable liquor. In Maharashtra, the excise duty on Indian Made Foreign Liquor (IMFL) was previously set at three times the manufacturing cost but has now been raised to 4.5 times the cost.
The lawsuit filed by the International Spirits and Wines Association (ISWAI) in the Bombay High Court is against the new policy in Maharashtra. Under this policy, the taxes on premium affordable liquor brands are raised from 300% to 450%. Moreover, it has reserved a 270% tax rate on brands that are produced by local firms with no foreign investment and are classified as “Maharashtra Made Liquor”.
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The category "Maharashtra Made Liquor" (MML) was introduced by the Maharashtra government to promote local manufacturing and investment. The government claims that this initiative will increase factory operating capacity, boost job creation, and raise state revenues by nearly INR 14,000 crore annually.
However, this policy has led to competitive disadvantages for non-local and global brands. An excise duty hike is imposed on all premium brands with a production cost below INR 260 per litre, which includes about 70% of premium spirit sales in Maharashtra.
Industry bodies report that as a result of this policy, sales of the affected brands have fallen by 35% to 40%. Overall, Indian Made Foreign Liquor (IMFL) sales have dropped by 12% to 18%, with some premium categories experiencing declines of 20% to 25%. Beer volumes have also decreased by 15% to 20% due to price sensitivity.
The brands that are affected under this policy include Pernod Ricard’s Royal Stag, Allied Blenders & Distillers’ Officer’s Choice, Diageo’s McDowell’s No.1, and Tilaknagar Industries’ Imperial Blue.
The lawsuit filed by the International Spirits and Wines Association (ISWAI) argues that the policy gives local firms an artificial competitive advantage. This is clear discrimination against the non-local and global brands. The association wants either the withdrawal of this policy or the inclusion of all the brands in the lower tax category.
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Industry representatives also mentioned that such a sharp tax hike will push consumers towards illegal and lower-quality alternatives, which will in turn disrupt the efforts of the government to promote responsible consumption and premiumisation.
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ISWAI has filed a lawsuit against the Maharashtra government over the sharp excise duty hike. The government calls it a measure to boost jobs and revenue, while the global spirits group calls it a clear case of discrimination. The case is scheduled for a court hearing on December 9, 2025.
