The Indian state of Maharashtra in west-central India with its capital Mumbai intends to increase the water levy for water bottling plants and breweries from the existing rate of 1.5 times to five times of the industrial tax. The new water tax rates for industries will be lifted by Rs 10 to Rs 20m ($0,16-$0,31) to Rs40 to Rs80 ($0.62-$1.25) per 100 hectoliters Breweries, soft drink and bottled water plants, however, will have to pay Rs 200 to Rs 400 ($3.12-$6.24) per 100 hectoliters, from earlier’s Rs45 to Rs90 ($0.70-$1.40).
The price hike for water will lead to a similar hike in water, soft drinks and beer, which will in turn reduce consumtion of the said beverages. Industry experts fear a further diminishing number of breweries in the state, which already have dropped to six from 12 due to government policies.
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