Guwahati: The excise department of Assam will hike alcohol prices from April 1. This price adjustment stems from the recalibration of ad-valorem taxes across various alcohol categories, including Indian- made foreign liquor, beer, wine, and ready-to-drink beverages.

The overarching goal of this new tax structure is to augment the state’s revenue stream, recognizing alcohol as one of Assam’s primary sources of tax income.

According to reports, Assam sees an average daily consumption exceeding 5.30 lakh liters of liquor among its residents. This translates to a daily excise revenue surpassing Rs 10 crore. The revised tax rates will apply to alcohol purchases for both civil consumption and procurement through Canteen Stores Depot (CSD) bonded warehouse and paramilitary wholesale warehouses.

The updated tax framework introduces varied ad-valorem levies and minimum prices for different alcohol classifications. For example, draught beer with up to 5 percent alcohol content will be subject to ad-valorem levies ranging from 0.73 to 0.88 times the assessed value, with minimum prices per 650ml bottle ranging from Rs 33 to Rs 43.

Similarly, India-made spirits will face ad-valorem levies ranging from 0.66 to 1.32 times the assessed value, with minimum prices per 750ml bottle ranging from Rs 130 to Rs 530.

Consumers procuring alcohol through CSD and paramilitary warehouses will also feel the impact of the new tax rates. For instance, beer with up to 5 percent alcohol content will incur an ad-valorem levy of 0.53 times the CSD cost price, with a minimum price set at Rs 16 per 650 ml bottle.

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