Govt allows liquor outlets in shopping malls; adds de-addiction cess

Bhubaneswar: Next time you walk into a shopping mall, along with clothes and accessories, you might also be able to buy liquor from a high-end store.Starting April 1, the buying experience of people in Odisha is set for a big upgrade as the state’s new excise policy allows super-premium, air-conditioned liquor outlets of at least 4,000 sqft in shopping malls and prime city locations.And while the makeover kicks in, those who love their tipple will have to shell out more, with the govt imposing a new de-addiction cess and increasing excise duty and import fees across categories.Breaking from tradition, the state on Thursday announced a three-year excise policy — the first by the Mohan Charan Majhi govt — to “ensure continuity and predictability”. The 2023-24 policy has been extended till March 31.

The newly introduced Super Premium FL OFF shops will be allowed only in municipal corporation areas of Bhubaneswar, Cuttack, Puri, Rourkela, Sambalpur and Berhampur. Applicants will have to pay a non-refundable fee of Rs 5 lakh, with renewal for 2027-28 costing Rs 3 lakh and a 10% annual escalation thereafter.Annual licence fee for each outlet has been set at Rs 50 lakh, also with a 10% yearly increase. A wine-tasting room will attract an additional fee of Rs 50,000 a year.

Considering Puri as a ‘sacred area,’ the policy said no liquor shop will be allowed near Jagannath Temple, on Badadanda, or in beach shacks within the Puri municipal limits. While no outlet currently exists on Badadanda, the govt reiterated the ban in the policy for the first time, considering religious sensitivities around the shrine.The cess and increase in excise duty and fees might see retail prices of Indian-made foreign liquor (IMFL) going up by 10% to 15% after import fee was raised from Rs 15 to Rs 50 per LPL (litre of spirit at 50% alcohol strength).

A 650ml bottle of beer may cost Rs 5 to Rs 12 more, as duty on mild beer has gone up from Rs 45 to Rs 55/litre. Imported premium whisky and rum could see a steeper jump of Rs 150 to Rs 300 per bottle, industry insiders said.Excise minister Prithiviraj Harichandan said a track & trace system will be introduced to digitally monitor liquor movement from distillery to retail shop, aimed at checking leakage, curbing illicit trade and ensuring quality.

The system will also track extra neutral alcohol (ENA), the base for IMFL and country liquor. “Safety and quality of alcohol is a major focus of the policy,” Harichandan said.Mandatory CCTV coverage will be rolled out across the supply chain, with all manufacturing units and shops linked to the excise commissioner and district offices. Digital payment options will be available in all shops. A 0.5% de-addiction cess will be levied on the excise duty value of all beverages sold through Odisha State Beverages Corporation.

The govt has created a Rs 100 crore fund for anti-alcoholism and drug de-addiction campaigns.The state has also scrapped the rule that forced liquor shops to lift a fixed quantity of stock under minimum guaranteed quantity (MGQ). Instead, it has introduced a system where shops must ensure the govt gets minimum guaranteed excise revenue (MGER), regardless of how much liquor they lift.