CHANDIGARH: The Punjab Cabinet has approved the Excise Policy for 2025-26, aiming to generate Rs 11,020 crore in excise revenue, an increase of Rs 874.05 crore (8.61 per cent) over the previous financial year’s target.
Additionally, the government has proposed setting up excise police stations across the state. Meanwhile, the Congress and BJP have criticised the move.
The decision was taken during a Council of Ministers meeting held today at the official residence of Chief Minister Bhagwant Mann.
Punjab Finance Minister Harpal Singh Cheema, who also holds the Excise and Taxation portfolio, stated that against the target of Rs 10,145 crore set for the Excise Policy 2024-25, the state government has already collected Rs 10,200 crore.
"Excise collection is witnessing a steady surge in the state during the current regime, as for the first time, the collection has crossed the Rs 10,000 crore mark. It is worth mentioning that the excise revenue in the last year of the SAD-BJP alliance was Rs 4,405 crore, while in the last year of the Congress regime, it was merely Rs 6,254 crore," he said.
Cheema explained that the new policy ensures a balance in the existing retail trade while encouraging broader participation. The fresh allotment of L-2/L-14A vends for 2025-26 will be conducted via e-tender, with the group size set at Rs 40 crore.
To mobilise additional revenue and ensure adequate availability of country liquor, the Punjab Medium Liquor (PML) quota for 2025-26 has been increased by 3 per cent to 8.534 crore proof litres. However, there will be no increase in country liquor prices.
"In order to provide relief to the defence forces, the licence fee for their wholesale permits has been reduced by 50 per cent, from Rs 5 lakh to Rs 2.5 lakh," Cheema said.
To promote tourism, the possession limit for farm stay licence holders has been increased from 12 quarts of Indian Made Foreign Liquor (IMFL) to 36 quarts, along with an increase in the allowed quantity of beer, wine, gin, vodka, brandy, ready-to-drink (RTD) products, and other liquor items.
To enhance customer experience, the policy mandates that each retail licensee in Municipal Corporation Areas must set up a model shop. Meanwhile, the fee for standalone beer shops has been slashed from Rs 2 lakh to Rs 25,000 per shop.
The state has also permitted the establishment of new bottling plants to attract fresh investment. The Cow Welfare Fee has been increased by 50 per cent, from Rs 1 per proof litre to Rs 1.5 per proof litre, raising expected revenue collection from Rs 16 crore to Rs 24 crore.
"To strengthen enforcement, we have proposed setting up excise police stations in the coming financial year. Additionally, to promote ease of doing business, brands with no increase in Ex-Distillery Price (EDP) will receive automatic approval through the e-Abkari portal," Cheema added.
In another major decision, the Cabinet approved amendments to the Punjab Registration of Births and Deaths (Amendment) Rules, 2025, making it mandatory for doctors to specify the date and cause of death in medical certificates.
The Cabinet also approved the formation of the "Punjab Tirth Yatra Samiti" to facilitate pilgrimage for residents of Punjab through air, rail, road, or any other means under the Mukh Mantri Tirth Yatra Scheme.
Additionally, Punjab Information and Communication Technology Corporation Ltd. (PICTC) has been designated as the sole provider of digital signatures for all government departments and organisations. The Cabinet has also given the green light to adopt the Water (Prevention and Control of Pollution) Amendment Act, 2024, enacted by Parliament.
Meanwhile, Leader of Opposition and senior Congress leader Partap Singh Bajwa called on the Comptroller and Auditor General (CAG) to launch a similar probe in Punjab, following allegations of financial irregularities in the previous Aam Aadmi Party (AAP) government’s excise policy in Delhi.
"As per the CAG report, the Delhi government incurred a loss of Rs 2,002 crore due to alleged irregularities in formulating and implementing the excise policy under the AAP regime in 2021-22. The report also revealed that the AAP government’s spending on advertising campaigns surged by 1,200 per cent between 2018 and 2022," Bajwa said.
Earlier in the day, Punjab BJP President Sunil Jakhar took a swipe at the government on X, suggesting that the presence of former Delhi Deputy Chief Minister Manish Sisodia in Chandigarh had unsettled the Punjab leadership.
"Maybe it is the presence of Sh. Manish Sisodia ji in Chandigarh for the last couple of days that has caused sleepless nights and heightened blood pressure for the Punjab Chief Minister, because Sisodia ji has been preparing the Punjab liquor policy to be presented before the Chief Minister. I wish good health and good luck to Sh @BhagwantMann ji in the coming days. Ps. Beware Cheema Sahib, as the Excise Minister of Punjab, you wouldn’t like to meet the same fate as that of Sisodia ji," Jakhar wrote.