This strategic decision to lower alcohol prices is aimed at boosting sales, especially in anticipation of the upcoming festival season.
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.
Read More: Centre defends law on triple talaq in SC, says practice ‘fatal’ to institution of marriage
Check Revised Prices
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 per 650ml bottle. Similarly, Indian-made spirits priced under Rs 360 per bottle will become cheaper by Rs 144 per 750ml bottle, thanks to an ad-valorem tax rate of 1.21 times 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.
Read More: Rules for Digital Personal Data Protection Act expected in a month: Ashwini Vaishnaw
Strategic Move Ahead of Festival Season
This strategic decision to lower alcohol prices is aimed at boosting sales, especially in anticipation of the upcoming festival season. By counteracting the negative impact of the earlier price increase, the Assam Excise Department hopes to stimulate consumer demand and drive revenue growth. With Assam consuming approximately 5.30 lakh liters of alcohol daily and generating Rs 10 crore in excise revenue, the response to this price adjustment is expected to be lively and positive.
