GUWAHATI: The Assam government has amended the Assam Excise Rules, 2016, introducing a Minimum Guaranteed Revenue (MGR) mechanism for wholesale and retail liquor licence holders in a move aimed at ensuring a fixed level of excise revenue for the state.
ALSO READ: Assam Introduces New Rules for ‘Assam Made Liquor’ Production and Sale
Under the new provision, the Excise Commissioner, with prior approval from the State Government, will determine the minimum amount of revenue that Indian Made Foreign Liquor (IMFL), beer and country spirit wholesale and retail (OFF) licence holders must contribute during a financial year.
According to the amended rules, MGR will include the actual revenue deposited by wholesale licence holders and the notional revenue generated by retail (OFF) licence holders through transport and import permits or passes. The calculation will also include ad valorem levy and permit/pass fees, but exclude licence fees and VAT.
The Excise Commissioner will prepare a district-wise list of licence holders and assess their revenue contributions based on data from the previous year. For newly issued licences, the MGR will be determined based on the average minimum guaranteed revenue per licence in the district where the new licence is granted.
The government said the revenue targets will be fixed after considering the state's overall revenue requirements and any proposed excise policy reforms for the upcoming financial year. The proposed MGR list will be submitted to the State Government for approval before being forwarded to District Commissioners and Co-district Commissioners, who will be responsible for monitoring and collecting the revenue.
To make compliance easier, the annual MGR amount will be divided into four quarterly targets. Licence holders will be required to ensure that the prescribed revenue for each quarter is met by the last day of the quarter. Any excess payment or shortfall during a quarter may be adjusted in subsequent quarters.
At the end of the financial year, authorities will review the total revenue deposited by each licence holder to determine whether the prescribed MGR has been achieved. If a licence holder fails to meet the target, a penalty equal to 10 per cent of the shortfall amount will be imposed, payable within 15 days of the start of the next financial year.
The rules further provide that if the penalty is not paid within the stipulated period, the licence holder will have to pay an additional penal interest of 1.5 per cent per month on the unpaid amount until the dues are cleared.
The introduction of the MGR system is expected to strengthen revenue collection under Assam's excise regime while creating greater accountability among liquor licence holders across the state.
