Bhubaneswar, March 26 The Odisha government on Thursday unveiled a new excise policy with a 'de-addiction' cess, increased licence fees, and a restructuring of the revenue mechanism.
Unveiling the policy in the Odisha Assembly, Excise Minister Prithviraj Harichandan said that this policy will remain in effect from April 1, 2026, to March 31, 2029.
He said that the new policy also focuses on increasing licence fees and restructuring revenue mechanisms.
"It has officially recognized alcohol consumption as a harmful habit and, therefore, introduced a 0.5 per cent 'De-Addiction Cess' on excise duty," the minister said.
According to the policy, the revenue generated from this cess will be used exclusively for setting up and running model de-addiction centers across the state.
Under the provisions of the new policy, the government has increased application fees for excise licenses by 10 per cent, while licence fees will see an annual increase ranging from 10 per cent to 20 per cent.
The minister said that excise duties on Indian Made Foreign Liquor (IMFL) and country liquor have also been raised. The new policy replaces the Minimum Guaranteed Quantity (MGQ) system with the Minimum Guaranteed Excise Revenue (MGER) model to safeguard government revenue while also reducing pressure on traders to push sales volumes.
"This model is also expected to curb unethical practices like forced sales," the minister said, adding that the new policy mandates the modernization of out-still (OS) production units, including improved packaging and the installation of quality control equipment.
Compliance with Food Safety and Standards Authority of India (FSSAI) certification and pollution control norms has been made compulsory, and there is a provision of incentives for units completing modernization within stipulated timelines.
In order to enhance transparency and curb illegal trade, the government will implement a track and trace system to monitor extra neutral alcohol (ENA) movement and track each bottle from production to sale. CCTV surveillance will be installed across all production units and retail outlets, integrated with the Excise Commissioner's office and district authorities.
The government has also 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.
The minister said that the policy also clarified that no excise shops will operate near Shree Jagannath Temple on the Grand Road in Puri as a mark of respect for religious and cultural sensitivities.
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.