Booze is set to cost more in Punjab as the state government unveils its new excise policy for 2025-26. With a revised revenue target of Rs 11,020 crore, the policy introduces higher license fees, an increased levy for cow welfare, and a reduction in the number of liquor groups. These measures are expected to impact both consumers and businesses while significantly boosting state revenues.
Key Highlights of Punjab’s 2025-26 Excise Policy
Hike in Liquor Prices
Under the new policy, the cost of liquor across categories is set to rise due to an extra license fee imposed on all types of alcoholic beverages. The move is aimed at generating an additional Rs 874 crore in revenue for the state, compared to the previous fiscal year’s target of Rs 10,145.95 crore.
Reduction in Liquor Groups
The number of liquor groups has been reduced to 207. This reorganization is expected to streamline the liquor trade while enabling the government to have better regulatory control over distribution and sales.
Increase in License Fees
The policy includes an increase in the reserve price of retail groups, as well as various other fees, leading to higher liquor prices for consumers. Liquor traders will now have to pay an additional license fee, applicable across different types of alcohol, including whiskey, beer, and wine.
Special License Fee for Gaushalas
A unique aspect of Punjab’s revised excise policy is the increase in the cow welfare cess on liquor, specifically linking whiskey sales to cow welfare initiatives. This move ensures that a portion of liquor revenues goes toward supporting gaushalas (cow shelters).
Impact on Consumers and Businesses
The new excise policy is expected to have a mixed impact on different stakeholders:
- Consumers: Regular drinkers will feel the pinch of higher liquor prices, making alcohol consumption more expensive across the state.
- Liquor Traders & Retailers: Increased fees could put additional financial pressure on liquor businesses, potentially leading to a decline in sales or a shift in consumer behavior.
- State Revenue: The government aims to significantly boost its revenue collection, with projections of crossing Rs 11,000 crore through these changes.
- Cow Welfare Initiatives: The increased special license fee for gaushalas is expected to generate additional funds for cow shelters, promoting animal welfare as part of the policy.
Summing Up
Punjab’s 2025-26 excise policy is a strategic move to increase state revenue while ensuring regulatory control over the liquor trade. While consumers will have to shell out more for alcohol, the government is banking on these measures to strengthen its financial position and contribute to social welfare. The policy’s long-term impact on liquor sales, state revenue, and the industry at large remains to be seen.
