The Uttarakhand government has introduced the Excise Policy-2025, focusing on maximizing revenue while minimizing liquor consumption. The government has set an ambitious target of generating Rs 5060 crore in excise revenue for the financial year 2025-26, reflecting a 14% increase from the previous year. This policy emphasizes a regulated, transparent, and welfare-oriented approach to the liquor business.
Key Highlights of the Excise Policy 2025
1. Ban on Liquor Sales Near Religious Places
To uphold the sanctity of religious sites, liquor sales in designated prohibition zones have been completely banned.
2. Elimination of the Sub-Shop System
The government has entirely abolished the sub-shop system in the state, effectively curbing illegal sales and irregularities in the liquor trade.
3. Closure of the Metro Liquor Sales System
The new policy discontinues the metro liquor sales system, ensuring a more transparent and well-regulated liquor business.
4. Strict Action Against Overpricing
If liquor shops are found charging more than the Maximum Retail Price (MRP), strict action will be taken, including the cancellation of their licenses.
5. MRP Regulation for Departmental Stores
Previously, departmental stores had flexibility in liquor pricing under the 2013 rules. Now, the government has mandated adherence to MRP for fair pricing.
6. Excise Revenue Targets and Achievements
- 2023-24: Targeted Rs 4000 crore; actual revenue Rs 4038.69 crore.
- 2024-25: Targeted Rs 4439 crore; approximately Rs 4000 crore collected so far.
- 2025-26: Aiming for an ambitious Rs 5060 crore.
7. Promotion of Wineries in Hilly Areas
To support local farmers, the government is encouraging wine production from fruits grown in orchards. This initiative aims to boost employment and economic growth in mountainous regions.
8. Incentives to Attract Investment
- Preference will be given to local residents in the liquor business.
- Export duty on liquor has been removed to attract investors.
- Special facilities for liquor sales will be provided in malls and resorts.
9. Special Benefits for Uttarakhand’s Citizens
Local residents will receive priority in liquor licensing, fostering economic opportunities for the people of Uttarakhand.
10. Awareness Campaigns for Responsible Drinking
The government plans to launch a public awareness initiative on ‘Responsible Drinking’ to minimize alcohol-related harm and promote safe consumption practices.
A Balanced Approach: Revenue Growth with Public Welfare
The Uttarakhand government’s new excise policy aims to strike a balance between revenue generation and social responsibility. By promoting local investment, employment, and transparency, this policy sets the stage for sustainable economic development while respecting the principles of controlled liquor consumption.
