Bhubaneswar: The Odisha Government on Thursday announced a new excise policy that will remain in force for three years from April 1, 2026 to March 31, 2029.
The new policy, with a focus on increasing licence fees and restructuring revenue mechanisms, has officially recognised alcohol consumption as a harmful habit by introducing a 0.5 per cent ‘De-Addiction Cess’ on excise duty.
As per the policy, all revenue generated from this cess will be used exclusively for setting up and running model de-addiction centres across the state.
Presenting the policy in the state Assembly, Excise Minister Prithviraj Harichandan said application fees for various excise licences will be increased by 10 per cent, while licence fees will see an annual hike ranging from 10 to 20 per cent. The move is aimed at strengthening state revenue while regulating the liquor trade.
The policy replaces the existing Minimum Guaranteed Quantity (MGQ) system with the Minimum Guaranteed Excise Revenue (MGER) model. This shift is expected to safeguard government revenue while reducing pressure on vendors to push higher sales volumes merely to meet quantity targets.
The government has decided not to allow any new ‘off’ shops in the state. Similarly, no new ‘on’ shops will be permitted in rural areas. However, a limited relaxation has been provided for three-star and above hotels and clubs located in industrial zones.
As a mark of respect for religious and cultural sensitivities, the policy states that no excise shops will operate near the Shree Jagannath Temple and along the Grand Road (Bada Danda) in Puri.
Home delivery of liquor has been completely banned as part of measures to put a strict check on the spread of addiction.
Excise duty on both Indian-made foreign liquor (IMFL) and country liquor has also been increased under the new policy framework.
In a significant change, a three-year policy has been introduced instead of the earlier annual system. This will help bring clarity and predictability in revenue collection, while giving a clear direction to the policy.
