Cabinet approves new Excise Policy
By Our Staff Reporter
Dehradun, 3 Mar: In a significant move, the Uttarakhand State Cabinet has approved the New Excise Policy 2025 during a cabinet meeting held today under the chairmanship of Chief Minister Pushkar Singh Dhami. The government has claimed that the new policy aims to bring transparency to liquor sales and curb irregularities. Significantly, a complete ban has been imposed on the sale of liquor in and around religious places, while the system of sub-shops has been abolished to prevent illegal sales. The government has set a revenue target of Rs 5,060 crores for the financial year 2025-26.
To ensure compliance, the government claims to have introduced strict measures against overpricing. Any shop found selling liquor above MRP will face immediate licence cancellation. The MRP regulation has also been extended to the departmental stores selling liquor, ostensibly to ensure uniform pricing. Additionally, the sale of metro liquor has been completely banned under the new policy.
The excise duty exemption for winery operators has been extended for 15 years to promote local products. Only permanent and native residents of Uttarakhand will be eligible for FL-2 licenses. Liquor shops will be allotted for two years, and in case of non-renewal, they will be reallocated through a lottery system to maintain fairness.
The excise revenue in Uttarakhand has seen a significant rise over the past two years. The government has set a revenue target of Rs 5,060 crores for the financial year 2025-26. In 2023-24, revenue collections stood at Rs 4,038.69 crores, surpassing the target of Rs 4,000 crores. For 2024-25, the excise revenue of approximately Rs 4,000 crores has already been collected against the target of Rs 4,439 crores.
Support for Hill Wineries and Liquor Industry
To boost investment and employment, winery units in hilly areas producing liquor from local fruits will be exempted from excise duty for 15 years. This policy is expected to benefit farmers and horticulturists by increasing economic opportunities. Additionally, export duty has been reduced to attract investments in the malt and spirit industry, with special facilities being offered for industries in the hills.
It has been claimed that liquor shop allocations will be done through transparent processes, including renewals, lottery, and maximum bid offers. The policy also encourages distilleries to use local agricultural products, providing new market opportunities for farmers and boosting their income.
