In a major shift from its previous annual strategy, the Odisha government introduced a new all-encompassing three-year excise policy, indicating a move towards greater transparency and stricter controls.

During the Assembly announcement, Excise Minister Prithiviraj Harichandan stated that the three-year framework, effective from April 1, 2026, to March 31, 2029, seeks to establish consistency and clarity in excise administration, while allowing for adjustments as necessary.

The state government has implemented a 0.5 per cent 'de-addiction cess' on excise duty under the new policy, recognizing that drinking alcohol is a detrimental practice. The revenue generated from this cess will be allocated specifically for the creation and enhancement of model de-addiction centres throughout Odisha, he stated.

The revised policy has established stricter regulations on the growth of alcohol retail networks. No new OFF, country liquor (CL), or out-still (OS) stores will be allowed throughout the state. The establishment of new ON stores in rural regions has been prohibited, with limited exceptions allowed solely for three-star hotels and above, as well as clubs situated in industrial areas. The state BJP pledged in its 2024 election manifesto to prevent the establishment of new liquor shops in Odisha.

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Considering the sensitivity to religious feelings, the Odisha government has banned the functioning of excise shops near the Shri Jagannath Temple and along the 2.6 km stretch of Badadanda (Grand Road) in Puri. The new framework has fully prohibited home delivery of alcohol.

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The government has taken steps to boost its revenues by implementing a careful rise in fees and taxes. Excise licence application fees have increased by 10 per cent, and licence fees will undergo an annual rise of 10 to 20 per cent throughout the policy duration. Moreover, excise taxes on Indian-made foreign liquor (IMFL) and local liquor have been raised. The state produces more than Rs.11,000 crore in excise income each year.

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In a significant structural overhaul, the plan has substituted the Minimum Guaranteed Quantity (MGQ) system with a Minimum Guaranteed Excise Revenue (MGER) framework. This is anticipated to safeguard government income while relieving pressure on traders to increase sales volumes to achieve quantity goals. Authorities stated that the new system would aid in reducing immoral practices like coercive or poor-quality sales.