Big Price Drop: Assam Slashes Alcohol Costs Starting September

GUWHAATI: The Assam Excise Department has announced a decrease in the prices of alcohol with effect from September, with revision in ad-valorem excise duty fixed on various alcoholic beverages like Indian-made foreign liquor, beer, wine, brandy, rum, and ready-to-drink options.

 This comes about after the prices were hiked in March to raise the revenue of the state, as the excise duty on alcohol is a major contributor to the state's coffers.

Excise Department explained that new tax system combines ad-valorem rates with modified minimum prices on the type and cost of liquor.

Finally, draught beer with an alcohol content of up to 5 per cent would now have an ad-valorem tax rate of 0.57 times its assessed value, which will bring down the price by Rs 34 per 650ml bottle.

Spirits: In the spirits category, Indian-made spirits costing less than Rs 360 per bottle will become cheaper by Rs 144 per 750ml bottle as it will attract an ad-valorem tax rate of 1.21 times of the assessed value.

For luxury brands whose MRP does not rise above Rs 360 to Rs 500, there is a reduction in price of Rs 166 per 750ml bottle for an ad-valorem tax rate of 1.08 times the assessed value. Similarly, for premium brands, priced between Rs 500 and Rs 700, there will be a price drop of Rs 214 per 750ml bottle for an ad-valorem tax rate of 1.06 times the assessed value.

The price reduction is viewed as a Calculated move to push sales before the onset of the festival season and in view of a slump in alcohol sales following the earlier price hike.

Assam, that consumes around 5.30 lakh litres of alcohol daily earning Rs 10 crore as excise revenue from it, would be abuzz with the impact of this reduction.

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