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The Andhra Pradesh government has announced a comprehensive overhaul of its excise policy, introducing significant changes aimed at both streamlining the liquor industry and generating increased revenue for the state. This new policy, effective from October 12, 2024, to September 30, 2026, is projected to bring in ₹5,500 crores to the state coffers.
A key element of this reform is the privatization of retail liquor operations. The government will be notifying 3,736 retail outlets across the state, granting private entities the responsibility of managing and operating these establishments. This move is expected to benefit retailers, who will receive a 20% margin on the issue price of various alcohol products, including Indian-made foreign liquor (IMFL), foreign liquor (FL), beer, and wine.
Beyond the standard retail outlets, the policy introduces a premium retail category, targeting a more affluent consumer base. Twelve premium stores are slated to open in major cities like Visakhapatnam, Vijayawada, and Rajamahendravaram. These stores, exceeding a minimum area of 4,000 square feet, will provide a high-end retail experience, featuring premium liquor brands and specialized accessories.
To further enhance efficiency and transparency, the government is streamlining the excise tax structure by reducing the number of tax heads from 10 to 6. Retail excise taxes will be levied based on population slabs, ranging from 50 lakh for smaller mandals to 85 lakh for larger cities. This revised system aims to simplify the tax collection process for businesses while facilitating better monitoring by authorities.
The new policy emphasizes strict regulations for the sale and distribution of IMFL and FL. To bolster transparency and monitoring, the policy mandates the installation of CCTV surveillance in all retail shops. Additionally, all vehicles involved in liquor transportation will be equipped with GPS tracking devices.
Recognizing the potential health risks associated with alcohol consumption, the government plans to launch public awareness campaigns to educate citizens about the harmful effects of alcohol abuse. Collaborating with the health department, the government will also establish de-addiction centres to provide support for individuals struggling with alcohol dependence.
Source: Andhra Pradesh liberalises excise policy: Premium liquor stores and strict regulations coming up