United Spirits Share Price Slumps As Maharashtra Hikes Excise Duty On Hard Liquor
Share prices of UBL and Radico Khaitan were also under pressure on Wednesday morning, whereas Sula Vineyards and GM Breweries rallied.
Shares of hard liquor manufacturers like United Spirits Ltd., Radico Khaitan Ltd., United Breweries Ltd. have declined with United Spirits slumping 6.19%, Radico Khaitan going down 3.04% and UBL also declining 1.55% after the Maharashtra government decided to raise excise duties on Tuesday. This applies to both retail purchase from a liquor store and consumption in a restaurant or bar.
Premium foreign liquor brands have seen the most hike, with a new rate set to bring the minimum retail price to Rs 360. The excise duty on Indian-made foreign liquor with a declared manufacturing value up to Rs 260 per bulk litre will increase from three times to 4.5 times the manufacturing value. While the excise duty on country liquor will rise from Rs 180 to Rs 205 per proof litre.
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Sula Vineyards, GM Breweries Rally As Maharashtra Exempts Beer And Wine From Excise Duty Hike
The Maharashtra state cabinet, chaired by Chief Minister Devendra Fadnavis, approved measures to increase the revenue of the Excise Department on Tuesday. These initiatives are expected to boost the department's annual revenue by approximately Rs 14,000 crore.
The cabinet further granted approval to introduce a new category of grain-based foreign liquor called Maharashtra-made liquor. Only Maharashtra-based liquor manufacturers will be allowed to produce this, and they must register new brands for this category.
Alcohol Stocks Share Price Today
Share price for United Spirits fell as much as 6.19% to Rs 1,510.20 apiece. While that of Radico Khaitan was down as much as 3.04% to Rs 2,574.10 apiece, share price for UBL declined as much as 1.55% to Rs 2035.20.
