This strategic decision to lower alcohol prices is aimed at boosting sales, especially in anticipation of the upcoming festival season. Published: August 20, 2024 9:19 AM IST By Edited by The Assam Excise Department has made a significant announcement that has sent ripples of excitement through the state. Starting this September, alcohol enthusiasts in Assam can rejoice as prices are set to decrease notably.
The recent reduction in alcohol prices is a result of the Assam Excise Department’s decision to revise the ad-valorem excise duty applied to various alcoholic beverages. This revision encompasses a wide range of drinks, including Indian-made foreign liquor, beer, wine, brandy, rum, and ready-to-drink options. The move comes after a previous price increase earlier in the year, which was primarily aimed at boosting state revenue.
While excise duty on alcohol has traditionally been a significant revenue source for Assam, the earlier price hike led to a decline in sales. This downturn prompted the government to reevaluate its strategy, ultimately leading to the decision to lower prices. The new tax system, which combines ad-valorem rates with revised minimum prices, is expected to have a positive impact on sales.
The revised tax system will result in substantial reductions across various categories of alcohol. For example, draught beer with up to 5% alcohol content will now incur an ad-valorem tax rate of 0.57 times its assessed value, translating to a price drop of Rs 34 p.