To compensate for fuel tax losses, Assam sees liquor prices rise

Guwahati (Dec 10th, 2008) Officials said Friday that the Assam government raised the excise tax on liquor by 15% to offset the reduction in Value Added Tax for petrol and diesel.

An Excise Department official said that the tax would be higher for costly liquor in Assam while no tax has been proposed for wine, beer and cheap brands in view of the high existing levy and to protect the local industries.

Assam has 1,234 liquor and wine retail outlets with 318 in Guwahati alone.The number of bars in the state is 996.

According to the official, the Assam government raked in Rs 2,033 crore excise revenues for 2020-21 fiscal.The department aims to collect Rs 2,400 crore excise revenue during the current financial years (2021-22).

Meanwhile, during the first wave of Covid-19, alcohol prices in the state had gone up after the government decided to include a 25 per cent cess on liquor, in order to meet huge healthcare expenses caused by the pandemic.However, the cess was lifted subsequently.

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