VIJAYAWADA: The Government of Andhra Pradesh on Tuesday notified a new excise policy, allowing private retailers to sell liquor on the lines of Haryana and other States. A revenue of Rs 5,500 crore is expected from retail outlets. In a complete overhaul of the excise policy based on best practices from other States, the government allowed retail sale of liquor through 3,736 notified private shops across AP.
The new policy will come into force from October 12, 2024 and the permission to sell IMFL (Indian made foreign liquor) and FL (foreign liquor) will be granted to private persons or entities through a selection process, according to a GO issued on September 30.
The period of licence for selling IMFL and FL by shops shall be from October 12, 2024 to September 30, 2026.
According to the GO, out of the total number of shops to be licensed in 2024-26, as many as 3,396 will be in the open category, while 340 shops will be reserved for ‘Geetha Kulalu’ (toddy tapping communities) with a view to empower them and promote equity and social justice.
“The selection process for granting licence will be through a draw of lots and an applicant can apply for more than one shop. Applicants have to deposit a non-refundable fee of Rs 2 lakh for each shop. As per the notification, the retail excise tax (RET) ranges from Rs 50 lakh for a locality with a population of 10,000 to Rs 85 lakh per annum for a municipality or municipal corporation having a population above 5 lakh during the fiscal 2024-25. It will be increased by 10% for 2025-26,” the GO read.
The overall exercise is expected to fetch Rs 5,500 crore revenue to the government. In order to provide an enhanced and high-end retail experience, a total of 12 premium store licences shall be granted as a separate category. These premium stores shall be strategically located across major municipal corporations namely Vijayawada, Visakhapatnam, Rajamahendravaram, Kakinada, Guntur, Nellore, Kurnool, Kadapa and Anantapur or any other city as notified by the government from time to time.
The Cabinet Sub-Committee had studied the Excise policies of States such as Telangana, Karnataka, Tamil Nadu, Kerala, Rajasthan and Uttar Pradesh and also took extensive feedback from key stakeholders for framing the policy. It had assessed the performance of the existing policy with respect to public health impact and other critical metrics.