Meghalaya Extends VAT Exemption for Fruit Wine, Boosts State's Wine Economy
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In a move to give a major push to Meghalaya's growing wine economy, the state government has extended the Value Added Tax exemption on fruit wine from three years to 10 years. The decision, announced by Excise Commissioner Matsiewdor War at the Meghalaya Wine Economy Summit 2025, aims to ease the tax burden on small producers and encourage higher standards for those looking to sell in wider markets. The government has also amended Rule 377 of the Excise Act to allow the setting up of 'wine boutiques' that can sell only registered homemade wines in specified premises or as part of stand-alone food establishments. This move is expected to allow visitors to experience Meghalaya's unique wine culture and encourage entrepreneurs to set up wine boutiques. Meghalaya has a rich history of fruit-based wines, dating back centuries through traditional fermentation practices that relied on millet, rice, and indigenous fruits. The Meghalaya Fruit Wine Makers Association highlighted this history, noting that English settlers also produced fruit wines in the region. The association's president, Bryan Dally Kharpran, said wine-making in the region is as old as the hills. He cited the example of Captain Hunt, who obtained a licence to manufacture cherry wine and cherry brandy in 1947, and the tradition has survived in pockets of society ever since. The recent policy developments reflect growing recognition of fruit wine as both a cultural legacy and an emerging economic opportunity. The association remains committed to strengthening the sector and supporting local communities involved in wine-making. With this extended VAT exemption, Meghalaya's wine economy is poised for significant growth.
