Assam to cut alcohol prices from September; full details here

Guwahati, Aug 19: The prices of alcohol in Assam are set to decrease from September 1. In a notification issued on August 17, the Assam Excise Department has said that the move comes following a adjustment of ad-valorem taxes on various types of alcoholic beverages, including Indian-made foreign liquor, beer, wine, brandy, rum and ready-to-drink options.

This price adjustment comes after a hike in March, which was intended to boost state revenue, given the significant role of alcohol taxes in Assam’s financial structure.

In the statement, the Department detailed the updated tax framework, which introduces varying ad-valorem levies and adjusted minimum price thresholds based on the type and cost of alcohol.

For instance, draught beer with up to 5% alcohol content will now face an ad-valorem levy of 0.57 times its assessed value, leading to a reduction of Rs 34 per 650ml bottle.

In the spirits category, Indian-made spirits priced below Rs 360 per bottle will see a decrease of Rs 144 per 750ml bottle, resulting from an ad-valorem levy of 1.21 times the assessed value.

Luxury brands with a maximum retail price (MRP) between Rs 360 and Rs 500 will experience a price drop of Rs 166 per 750ml bottle, due to an ad-valorem levy of 1.08 times the assessed value.

Similarly, elegant brands priced between Rs 500 and Rs 700 will see a reduction of Rs 214 per 750ml bottle, with an ad-valorem levy of 1.06 times the assessed value.

The price cut is speculated to be a strategic move ahead of the festive season and in response to a decline in alcohol sales following the previous price hike.

Assam, which consumes an average of 5.30 lakh litres of alcohol daily, generating Rs 10 crore in excise revenue, may see a significant impact from this reduction.