UP’s government has approved its new Excise Policy for the fiscal year 2025-26, introducing significant reforms aimed at streamlining liquor shop management, increasing state revenue, and enhancing consumer convenience. The policy was finalized during a Cabinet meeting chaired by Chief Minister Yogi Adityanath.
E-Lottery for Liquor Shop Licences
One of the most notable changes is the introduction of an e-lottery system for the distribution of liquor shop licenses across the state. This move eliminates the traditional renewal process for existing licenses, which will be suspended until the 2026-27 financial year. The e-lottery aims to ensure transparency and equal opportunity in license allocation.
Composite Shops for Simplified Sales
The new policy introduces the concept of composite shops, allowing the sale of beer, foreign liquor, and wine from a single counter. This replaces the previous requirement for separate licenses for different alcoholic beverages. However, on-premises consumption will remain strictly prohibited at these outlets.
Impact on Alcohol Prices and Revenue Targets
Consumers can expect higher alcohol prices due to adjustments in the pricing structure under the new policy. The government has set an ambitious excise revenue target of Rs 55,000 crore, marking an increase of Rs 4,000 crore compared to the previous fiscal year.
Premium Retail Shop Regulations
The policy imposes new restrictions on premium brand liquor shops:
- Prohibited Locations: Such shops cannot operate within multiplexes or malls.
- Permissible Locations: They can be established at airport terminals, metro stations, and railway stations with a no-objection certificate from relevant authorities.
- License Renewal: Premium retail shop licenses can be renewed annually with a fee of Rs 25 lakh, maintaining the same fee structure as last year.
- Anti-Monopoly Clause: No single entity is permitted to hold more than two licenses, curbing the potential for monopolistic control.
Relaxation in Sale and Storage Regulations
Several consumer-friendly reforms have been introduced:
- Smaller Bottle Sizes: The sale of 60 ml and 90 ml bottles of foreign liquor is permitted for the first time.
- Personal Home Licence: The process for acquiring a personal license to purchase, transport, and store liquor beyond the retail limit has been simplified. The annual fee is Rs 11,000, with an additional security deposit of Rs 11,000.
Eligibility for Personal Home Licence
Applicants must meet the following criteria:
- Tax Compliance: Paid income tax for the last three consecutive years, with at least two years in the 20% tax slab.
- Agricultural Income: Individuals with taxable agricultural income (exempt from income tax) are also eligible.
Summing Up
Uttar Pradesh’s Excise Policy for 2025-26 marks a significant shift towards transparency, efficiency, and increased revenue generation. By leveraging digital tools like the e-lottery system and introducing consumer-friendly reforms, the government aims to modernize the state’s excise management while balancing regulatory controls with convenience for consumers and businesses alike.
