Sentinel Digital Desk
From September 1, 2024, Assam will see a reduction in alcohol prices following a new ad-valorem tax adjustment.
This price adjustment follows a spike in March that was meant to increase state revenue, considering the significant role of alcohol taxes in Assam's financial framework.
Draught beer with an alcohol level of up to 5% will now have an ad valorem tax rate of 0.57 times its assessed value, lowering the price by Rs 34 per 650ml bottle.
In the spirits category, Indian-made spirits costing less than Rs 360 per bottle will be Rs 144 cheaper per 750ml bottle due to an ad valorem tax rate of 1.21 times the assessed value.
For luxury brands whose MRP does not climb above Rs 360 to Rs 500, there is a price reduction of Rs 166 per 750ml bottle for an ad valorem tax rate of 1.08 times the assessed value.
Premium brands priced between Rs 500 and Rs 700 will see a price cut of Rs 214 per 750ml bottle, with an ad-valorem tax rate of 1.06 times the assessed value.
The price cut is seen as a calculated move to boost sales ahead of the festival season and in light of a drop in alcohol sales following the previous price hike.
Assam, which consumes an average of 5.30 lakh litres of alcohol per day and generates Rs 10 crore in excise revenue, may be significantly impacted by this drop.