Liquor Prices Rise as Unveils Punjab Excise Policy 2025-26
Punjab’s government has unveiled its excise policy for the fiscal year 2025-26, aiming to bolster state revenue through strategic adjustments in the liquor sector. The policy targets an ambitious ₹11,020 crore in revenue, marking an increase of ₹874 crore from the previous year’s projections.
Reduction in Liquor Groups and E-Tendering Implementation
A significant change in the new policy is the reduction of liquor groups from 236 to 207, encompassing 6,374 vends. This consolidation is designed to streamline operations and enhance efficiency within the state’s liquor distribution network. To promote transparency and competitiveness, the government has reverted to the e-tendering process for allotting these vends, a method previously utilized in 2022. This approach aims to balance the retail trade landscape and encourage broader participation among stakeholders.
Introduction of Additional License Fees
The policy introduces an additional license fee at the initial sale stage for various alcoholic beverages, including Indian Made Foreign Liquor (IMFL), imported liquor, wine, rum, gin, vodka, and beer. The fee structure is tiered based on the ex-distillery price (EDP) of the products:
- ₹37 per bulk liter for products with an EDP up to ₹1,000
- ₹45 per bulk liter for those priced between ₹1,000 and ₹2,000
- ₹80 per bulk liter for products ranging from ₹2,000 to ₹4,000
- ₹100 per bulk liter for products exceeding ₹4,000
This fee structure is designed to ensure a proportional contribution from various segments of the liquor market, aligning with the state’s revenue objectives.
Enhancement of Cow Welfare Cess
In a move that intertwines social welfare with revenue generation, the government has increased the cow welfare cess by 50%, raising it from ₹1 to ₹1.50 per proof liter. This increment is projected to elevate the revenue designated for the maintenance and support of gaushalas (cow shelters) from ₹16 crore to ₹24 crore annually. This initiative underscores the government’s commitment to animal welfare, uniquely linking liquor consumption to the well-being of cattle in the state.
Establishment of Excise Police Stations
To fortify enforcement mechanisms and curb illicit liquor trade, the policy proposes the establishment of dedicated excise police stations across Punjab. This measure aims to enhance regulatory oversight, ensuring adherence to the state’s excise laws and combating unauthorized liquor activities effectively.
Impact on Liquor Prices
The financial implications of the new excise policy are poised to affect consumers directly. Industry sources indicate that the additional license fees may result in an increase of ₹10 to ₹20 per bottle for IMFL and ₹30 to ₹40 for imported liquors. This anticipated price hike reflects the government’s strategy to augment revenue while maintaining a balance with consumer interests.
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Comparative Revenue Analysis
The current administration’s focus on excise reforms has yielded a notable upward trajectory in revenue collection. In the final year of the previous Shiromani Akali Dal-Bharatiya Janata Party (SAD-BJP) alliance, excise revenue stood at ₹4,405 crore, which increased to ₹6,254 crore during the last year of the Congress regime. The projected revenue of ₹11,020 crore for 2025-26 signifies a substantial enhancement, reflecting the government’s effective policy measures and enforcement strategies.
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In conclusion, Punjab’s excise policy for 2025-26 embodies a strategic approach to revenue augmentation through reforms in the liquor industry. By implementing additional license fees, increasing the cow welfare cess, and establishing dedicated excise police stations, the government aims to achieve its fiscal targets while promoting social welfare and regulatory compliance. These measures are anticipated to have a direct impact on liquor pricing, influencing consumer behavior and market dynamics within the state.
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