VIJAYAWADA: The Andhra Pradesh government has abolished the Additional Retail Excise Tax (ARET) that was levied on liquor supplied to bars, bringing parity in pricing between bars and retail shops.
Excise Principal Secretary Mukesh Kumar Meena issued orders through G.O. Ms. No. 24, removing the levy that had been in force since November 2019. The government said the move was part of reforms to rationalise excise policy.
Officials explained that before 2019, invoice prices of Indian Made Foreign Liquor (IMFL) and Foreign Liquor (FL) supplied by APSBCL depots were uniform for both bars and retail shops. The introduction of ARET created a disparity, with bars paying higher rates for identical products. The government noted this differential treatment was inconsistent with uniform taxation principles and led to market distortions.
The latest order amends the AP Excise (Grant of license of selling by Bar and conditions of license) Rules, 2025, deleting provisions related to ARET.