Overview
- The excise department has issued draft rules to shift from price-based slabs to a system that taxes each drink by its pure alcohol content, and it has opened a short public comment window.
- A state panel estimated alcohol harm at about Rs 51,000 crore a year and proposed raising the standard duty to Rs 2,000 per litre of pure alcohol by 2028–29 to better price the social cost.
- The change is designed to lift levies on cheap, high-strength spirits that dominate sales, which the committee says should nudge buyers toward lower-strength beverages over time.
- Industry reaction is split, with brewers backing the WHO-style model as a public health step and CIABC warning that lower-priced IMFL slabs could see sharper price hikes and volume drops after last year’s increases.
- Stakeholders flag risks including cross-border price gaps and revenue shifts, while the draft also proposes market deregulation and new enforcement tools such as manufacturer-set retail prices, blockchain shipment tracking, QR-coded bottles, and automated online licensing.