Indian Liquor Industry Group Backs Diageo, Pernod In Legal Battle Against Maharashtra Tax Policy

The Confederation of Indian Alcoholic Beverage Companies (CIABC), which includes leading international players Diageo and Pernod Ricard, has initiated legal proceedings against the Maharashtra state government. The dispute centers on the state’s decision to raise excise duties on Indian-made foreign liquor (IMFL) by nearly 50–60 percent earlier this year. Industry representatives claim the policy is excessive and risks damaging both business operations and state revenues.  

Key highlights from the announcement include  

• Maharashtra raised excise duties on IMFL by 50–60 percent in June 2025.  
• Diageo and Pernod Ricard, through CIABC, have challenged the policy in court.  
• Industry leaders argue the hike will sharply increase retail prices and reduce consumer demand.  
• The CIABC has warned that the move could backfire, lowering overall alcohol sales and hurting state revenue.  
• Over 20,000 bars across Maharashtra staged a “No Alcohol” protest earlier this year against the tax hike.  
• Pernod Ricard has already flagged concerns that the duty increase could dent its Q1 sales in India.  
• The lawsuit seeks relief from what the industry terms an “unreasonable” taxation policy.  

This legal challenge underscores the growing tension between global liquor companies and state governments over taxation policies. With India being a key growth market for premium spirits, the outcome of this case will be closely watched by both industry stakeholders and policymakers.  

Sources: CNBC TV18, India Today, Snackfax