### Overview
The Indian Spirits and Wine Association of India (ISWAI), representing global liquor companies such as Diageo and Pernod Ricard, has filed a lawsuit against the Maharashtra state government. The case disputes the recent tax hike on affordable liquor brands and the exclusion of imported or international spirits from a new lower-tax bracket.
### Policy and Dispute
Maharashtra recently revised its excise duty structure, introducing a lower levy for specific locally produced liquor brands to promote domestic businesses. However, ISWAI’s members were excluded from this category, leading to a substantial price gap between international and domestic products.
According to the association, the policy violates fair trade principles and discriminates against certain market players. ISWAI argues that such measures could harm competition, reduce consumer choice, and discourage foreign investment in India’s alcoholic beverage industry.
### Industry Reaction
Industry experts note that the new structure makes imported and globally marketed liquor brands significantly more expensive, potentially shrinking their market share. Local producers, meanwhile, gain a strong pricing advantage.
### Court Proceedings
The case, filed in the Bombay High Court, challenges the legality of Maharashtra's taxation approach, seeking relief through judicial review. The government has yet to publicly respond to the petition.
> “Our goal is a fair and balanced tax environment that treats all industry participants equally,” an ISWAI spokesperson stated.
### Possible Implications
If ISWAI succeeds, the ruling could set a broader precedent influencing other states’ alcohol taxation policies across India, potentially reshaping how international brands operate in local markets.
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**Author summary:** The ISWAI, representing global liquor giants, is legally contesting Maharashtra’s tax policy, claiming it discriminates against international brands while favoring local producers.
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The Economic Times on MSN — 2025-11-28