Odisha’s New Excise Policy Introduces 'De-Addiction' Cess and Modernizes Revenue Framework

The Odisha government has introduced a new excise policy featuring a 'de-addiction' cess, increased licence fees, and a restructured revenue mechanism. The policy, lasting from 2026 to 2029, aims to curb alcohol consumption by setting up de-addiction centers and enhancing transparency through increased surveillance and strict regulations.

The Odisha government has announced a new excise policy that includes a 'de-addiction' cess and increased license fees, aiming to curb alcohol consumption and restructure revenue mechanisms. The policy will be in effect from 2026 to 2029, providing a three-year framework for reform.

According to Excise Minister Prithiviraj Harichandan, the 0.5% 'De-Addiction Cess' will finance model de-addiction centers across the state. License fees will see annual hikes of 10% to 20%, while excise duties on Indian Made Foreign Liquor (IMFL) and country liquor will also increase.

The new policy replaces the Minimum Guaranteed Quantity (MGQ) system with the Minimum Guaranteed Excise Revenue (MGER) model to safeguard government revenue. Measures for enforcing transparency include a track and trace system for alcohol movement and CCTV surveillance at production units. The policy enforces strict location regulations and bans home delivery of liquor.

(With inputs from agencies.)