This move is seen as a strategic effort to boost sales ahead of the festival season and counteract the negative impact of the earlier price increase...
Digital Desk: The Assam Excise Department has announced a significant decrease in alcohol prices starting September, marking a notable shift from the previous hike implemented in March. This reduction follows a revision in the ad-valorem excise duty applied to various alcoholic beverages, including Indian-made foreign liquor, beer, wine, brandy, rum, and ready-to-drink options.
The decision to lower prices comes after a price increase earlier this year aimed at boosting state revenue. The excise duty on alcohol has been a crucial source of revenue for Assam, but the recent hike led to a downturn in sales, prompting the government to reconsider its strategy.
Under the new tax system, which combines ad-valorem rates with revised minimum prices, several categories of alcohol will see substantial reductions. For instance, draught beer with up to 5% alcohol content will now incur an ad-valorem tax rate of 0.57 times its assessed value, resulting in a price drop of Rs 34 per 650ml bottle.
In the spirits category, 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. Luxury brands, with an MRP between Rs 360 and Rs 500, will see a price reduction of Rs 166 per 750ml bottle, while premium brands priced between Rs 500 and Rs 700 will experience a Rs 214 drop per 750ml bottle.
This move is seen as a strategic effort to boost sales ahead of the festival season and counteract the negative impact of the earlier price increase. Assam, which consumes approximately 5.30 lakh liters of alcohol daily and generates Rs 10 crore in excise revenue, is expected to experience a lively response to this price adjustment.
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