UP Cabinet approves new excise policy; alcohol price to increase
What's the story
The Uttar Pradesh Cabinet has approved a new Excise Policy for the fiscal year 2025-26. The policy, which was approved in a cabinet meeting chaired by Chief Minister Yogi Adityanath, states that beer, liquor, and wine will now be sold from a single counter. UP Excise Minister Nitin Agarwal said liquor shop licenses will be issued through e-lottery and existing licenses won't be renewed till FY 2026-27.
Price hike
New policy anticipates rise in alcohol prices
The new policy is likely to increase alcohol prices across the state. Unlike before, beer won't need a separate license and composite shops will now sell foreign liquor, beer, and wine together. However, on-premises consumption at these outlets is still prohibited. Through this policy, the government hopes to collect ₹55,000 crore in excise revenue, an increase of ₹4,000 crore from last year.
License renewal
Premium retail shop licenses and restrictions
The new policy also permits the renewal of premium retail shop licenses at an annual fee of ₹25 lakh. To avoid monopolization, it prohibits any person or entity from holding more than two licenses. Further, premium brand liquor shops are now banned in multiplex areas of malls but allowed at airports, metro stations, and railway stations with relevant no-objection certificates.
Liquor sales
New regulations for sale of foreign liquor
For the first time, the sale of 60ml and 90ml bottles of foreign liquor has been permitted. The process of obtaining a personal home license has also been simplified, enabling people to buy and keep liquor beyond normal limits for personal consumption. The annual fee for this license is ₹11,000 along with an additional security deposit of the same amount. To qualify for the personal home license, applicants should have filed income tax returns for three consecutive years.
License eligibility
Eligibility criteria for personal home license
At least two of those years should reflect tax payments in the 20% slab. Those with taxable agricultural income exempt from income tax are also eligible under this new policy. In a bid to enhance safety and quality control, the new policy mandates that country liquor must now be sold in aseptic brick packs to reduce contamination risks.