Guntur liquor shop owners challenge 50% renewal fee in Andhra Pradesh HC

The petitioners cited Vizag as an example, stating that the annual retail excise tax for an unreserved shop was Rs 99.5 lakh in 2025-26, rising to about Rs 1.29 crore after adding the 38% renewal tax.
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VIJAYAWADA: Several liquor shop owners from Guntur district have approached the HC challenging GOs 579, 580 and 582 issued by the State government for renewal of retail wine shop licences for 2026-27. The petitioners contended that the government had imposed a 50 per cent higher renewal fee on open-category wine shops compared to shops reserved for the Geetha community, despite both categories engaging in the same business. They termed the differential fee discriminatory, arbitrary and unconstitutional, and sought quashing of the G.O.s.

Senior counsel Vedula Venkata Ramana mentioned the matter before a Division Bench headed by Chief Justice Lisa Gill on Tuesday and sought an urgent hearing. The Bench agreed to hear the matter on Wednesday.

The petitioners cited Vizag as an example, stating that the annual retail excise tax for an unreserved shop was Rs 99.5 lakh in 2025-26, rising to about Rs 1.29 crore after adding the 38% renewal tax. For Geetha-reserved shops, the corresponding amount was Rs 46.8 lakh, with the total after the 38% renewal tax being about Rs 64.6 lakh.

They argued that the differential taxation was illegal and sought directions to levy the same renewal fee on open-category shops as applicable to reserved shops. They also sought interim relief permitting them to pay the lower fee until the pending litigation over the 50% concession is decided.

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