Bhubaneswar, 26 March (H.S.): The Government of Odisha on Thursday unveiled a new three-year excise policy for the period from April 1, 2026 to March 31, 2029, focusing on higher licence fees and restructuring revenue mechanisms to strengthen the state’s finances.

Presenting the policy in the Assembly, Excise Minister Prithviraj Harichandan stated that application fees for various excise licences will be increased by 10 per cent. Licence fees will also witness an annual hike ranging between 10 and 20 per cent. The move is aimed at augmenting revenue while ensuring better regulation of the liquor trade.

In a notable step, the government has introduced a 0.5 per cent de-addiction cess on excise duty, recognising alcohol as a harmful substance. The revenue generated from this cess will be utilised for establishing and strengthening de-addiction centres across the state.

The policy replaces the existing Minimum Guaranteed Quantity (MGQ) system with the Minimum Guaranteed Excise Revenue (MGER) model. This transition is expected to protect government revenue while reducing pressure on vendors to increase sales volumes solely to meet quantity targets.

As part of regulatory measures, the government has decided not to permit any new ‘off’ shops across the state. Additionally, no new ‘on’ shops will be allowed in rural areas. However, limited relaxation has been provided for three-star and above hotels and clubs situated in industrial zones.

Taking into account religious and cultural sensitivities, the policy also stipulates that no excise shops will be allowed to operate near the Shree Jagannath Temple or along the Grand Road (Bada Danda) in Puri.

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Hindusthan Samachar / Monalisa Panda