BHUBANESWAR: Booze is going to get costlier in the state with the Odisha government hiking excise duty on Indian-made foreign liquor (IMFL) as well as country liquor (CL) from next month.
The state government on Thursday notified the new excise policy which will come into effect from April 1 and remain in force for three years till March 31, 2029.
As per the new policy, excise duty in shape of ad valorem tax on Indian-made whisky, gin, rum, brandy, vodka and other liqueurs has been increased from 55 per cent to 65 pc. Not just IMFL, the duty has been increased from 55 pc to 65 pc on whisky, gin, rum, brandy, vodka and other liqueurs imported in bulk and bottled in India.
However, the excise duty on beer, another major category of consumption, has been left untouched. Similarly, tax of 25 pc on whisky, gin, rum, brandy, vodka and other liqueurs imported from other countries remains unchanged.
Apart from the country liquor manufactured and supplied by Aska Cooperative Sugar Industries Limited (ACSIL), tax has been increased from 40 pc to 50 pc on country liquor from other suppliers.
The Odisha government has also introduced a 0.5 pc de-addiction cess on excise duty for the first time.
The income generated from the cess will be spent on establishing and strengthening model de-addiction centres, the policy said.
The new policy announced that no new off, country liquor or out-still shops will be permitted in the next three years. In rural areas, even new on-shops will not be allowed to be opened. However, only three-star and above hotels and clubs in industrial areas will be exempted from this norm.
As per the policy, no excise shops will be allowed in the vicinity of Shree Jagannath Temple or along the Grand Road in Puri as a mark of respect for religious sentiments. Home delivery too will not be allowed.
The government has raised application fee for various excise licence by 10 pc and the licence fee by 10 pc to 20 pc every year.
Another major structural change has been made from existing minimum guaranteed quantity (MGQ) to minimum guaranteed excise revenue (MGER) system. This will not only safeguard government revenue but also reduce the pressure on traders to increase sales to meet the quantity target. This will help in curbing the practice of cheap sales, said official sources.
The government also introduced a ‘track and trace’ system to monitor the movement of extra neutral alcohol (ENA) and enable bottle-level tracking from production to retail sale. All production units and retail outlets will be brought under CCTV surveillance, with live feeds linked to the office of the Excise commissioner and district authorities.
The out-still (OS) manufacturing units have been directed to modernise, install advanced packaging and quality control equipment. Compliance with FSSAI certification and pollution control rules will be mandatory. Incentives will also be given to units that complete modernization within the stipulated time frame.