Bhubaneswar: Liquor is going to become more expensive in Odisha from next month, as the state government has increased excise duty on both Indian-made foreign liquor (IMFL) and country liquor (CL).
The new excise policy, announced on Thursday, will come into effect from April 1, 2026, and will remain valid for the next three years, until March 31, 2029.
Under the revised policy, the excise duty on IMFL—such as whisky, gin, rum, brandy, vodka, and other liqueurs—has been increased from 55% to 65%. This hike also applies to liquor that is imported in bulk and bottled in India.
However, there is no change in duty on beer, which remains the same. Similarly, the 25% tax on imported liquor (bottled abroad) has also been kept unchanged.
For country liquor, the duty has been increased from 40% to 50% for products supplied by manufacturers other than Aska Cooperative Sugar Industries Limited (ACSIL).
New De-Addiction Cess Introduced
The government has introduced a 0.5% de-addiction cess on excise duty for the first time. The revenue collected from this will be used to set up and strengthen de-addiction centres across the state.
No New Liquor Shops in Next 3 Years
The policy clearly states that:
- No new off-shops, country liquor shops, or out-still units will be allowed for the next three years
- In rural areas, even new on-shops will not be permitted
- Only 3-star and above hotels and clubs in industrial areas will be exempt from this restriction
Additionally, no liquor shops will be allowed near the Jagannath Temple or along the Grand Road in Puri, respecting religious sentiments.
Other Key Changes
- Home delivery of liquor is not allowed
- License application fees increased by 10%
- License fees will rise by 10% to 20% annually
- Shift from Minimum Guaranteed Quantity (MGQ) to Minimum Guaranteed Excise Revenue (MGER) system
- This aims to protect government revenue
- Also reduces pressure on traders to push sales aggressively
Stronger Monitoring and Compliance
The government is also introducing a track-and-trace system to monitor the movement of extra neutral alcohol (ENA), enabling tracking from production to retail.
- All production units and retail shops will have CCTV surveillance
- Live monitoring will be connected to excise officials and district authorities
- Out-still units must modernize operations, improve packaging, and follow quality standards
- Compliance with FSSAI and pollution control norms will be mandatory
- Incentives will be provided to units that complete modernization on time
