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Andhra Pradesh Announces New Excise Policy for 2024-26, Inviting Applications for Liquor Shop Licenses

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The Andhra Pradesh government has officially rolled out its new excise policy for 2024-2026, which grants private individuals and entities the privilege to sell liquor through 3,396 retail shops starting from October 12, 2024, until September 30, 2026. The government has set shop operation hours from 10 AM to 10 PM daily.

As per GO 211, issued by Revenue (Excise) Principal Secretary Mukesh Meena on Monday night, these privately run shops will sell Indian Made Foreign Liquor (IMFL) and Foreign Liquor. Of the 3,736 available liquor shops, 340 have been reserved for the ‘Geetha Kulalu’ community, while the remaining 3,396 are open to all applicants.

The government has invited applications, which can be submitted either online or offline, for shop licenses spanning this period. The selection of applicants will be determined by a draw of lots, and there is no restriction on the number of shop licenses an individual can hold. Additionally, applicants can apply for multiple shops if desired.

Each application requires a non-refundable fee of ₹2 lakh. The retail excise tax (RET) is divided into four slabs, depending on the population size of the area:

Up to 10,000 people: ₹50 lakh per annum
Up to 50,000 people: ₹55 lakh per annum
Above 50,000 people: ₹65 lakh per annum
Above 5 lakh people: ₹85 lakh per annum

The RET will increase by 10% for the 2025-26 fiscal year. Licensees are permitted to pay the RET in six equal installments during the two-year period. Additionally, they must provide a bank guarantee equivalent to one installment of the 2024-25 RET within 30 days of selection. Successful applicants will have the flexibility to set up their liquor shops anywhere within notified units, such as municipal corporations, municipalities, Nagar panchayats, or Mandal.

The new policy is expected to streamline liquor sales while generating substantial revenue for the state over the next two years.

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