Assam Reduces Alcohol Prices: New Tax Rates Effective September
Guwahati, August 20, 2024: Assam’s Excise Department has declared a decrease in alcohol prices, effective from September. This change affects various alcoholic beverages, including Indian-made foreign liquor, beer, wine, brandy, rum, and ready-to-drink options. The reduction follows a price hike in March aimed at boosting state revenue. The excise duty on alcohol is a significant source of revenue for Assam. The revised tax structure combines ad-valorem rates with adjusted minimum prices based on the type and cost of liquor.
Revised Tax Structure:
The new tax framework merges ad-valorem rates with modified minimum prices, depending on the type and cost of the liquor. Here are the specifics:
Beer Prices:
Draught Beer (Up to 5% Alcohol Content): The price will drop by Rs 22 per 650ml bottle. The ad-valorem tax rate is now 0.57 times its assessed value.
Draught Beer (Above 5% Alcohol Content): The price will decrease by Rs 34 per 650ml bottle. The new tax rate is 0.82 times its assessed value.
Spirits Prices:
Indian-made Spirits (Rum): Bottles costing less than Rs 350 will see a reduction of Rs 117 per 750ml bottle. The revised tax rate will be 1.05 times the assessed value.
Indian-made Spirits (Brandy, Whisky, Gin, etc.): Bottles priced under Rs 360 will drop by Rs 144 per 750ml bottle. The new tax rate is 1.21 times the assessed value.
Luxury Brands: Spirits priced between Rs 360 and Rs 500 will experience a price cut of Rs 166 per 750ml bottle. The tax rate will be 1.08 times the assessed value.
Premium Brands: Bottles priced between Rs 500 and Rs 700 will decrease by Rs 214 per 750ml bottle. The new tax rate is 1.06 times the assessed value.
The price reduction is intended to boost alcohol sales ahead of the festival season and address a drop in sales following earlier price hikes. By lowering prices, the Excise Department aims to stimulate consumer demand and enhance market activity.
This strategic price adjustment is expected to provide a boost to sales and offer benefits to consumers as the festival season approaches.
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