Assam government amends excise rules; liquor prices likely to rise

Guwahati: The Assam government has amended the Assam Excise Rules, 2016, in a move that industry sources say could lead to an increase in liquor prices due to changes in licensing provisions and regulatory coverage across the alcohol supply chain, officials said.

The changes, announced in a special gazette, broaden the types of licensed activities and update important definitions related to making, storing, and selling alcoholic drinks in the state, officials said on Saturday.

The amendments were issued by the Excise Department under Section 84 of the Assam Excise Act, 2000, and have come into force with immediate effect, except for one provision under Rule 19 that will take effect from July 1, 2026.

One of the significant changes is the revision of the alcohol content threshold in a key definition under Rule 1A.

The prescribed limit has been increased from “more than five per cent V/V” to “more than eight per cent V/V,” altering the classification framework under the excise rules.

The notification also replaces the definition of “manufactory” with a broader provision.

Under the new rules, a manufactory will now include places where Extra Neutral Alcohol (ENA), rectified spirit, Indian Made Foreign Liquor (IMFL), beer, wine, and country spirits are made and stored without paying certain taxes or duties under the licences given by the rules.

In another important change, the state government has expanded the licensing rules to include IMFL wholesale warehouses, beer wholesale warehouses, beer retail OFF shops, and Country Spirit wholesale and retail outlets.

Excise officials stated that the amendments aim to streamline regulation and enhance clarity in the liquor industry’s licensing and operational structure.

Industry observers, however, said the expanded regulatory framework and compliance requirements may increase operational expenses for manufacturers, wholesalers and retailers, which could eventually be reflected in retail liquor prices.

The latest changes are part of the state’s ongoing efforts to strengthen oversight of the alcohol sector and modernise excise administration in line with evolving industry practices. (IANS)

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