The Andhra Pradesh government has announced significant changes to its liquor policy, combining price revisions with tax reforms to streamline sales and boost revenue. The state cabinet approved these decisions in a recent meeting, paving the way for immediate implementation across the state.
ARET on Bars Abolished
In a major relief to bar owners, the cabinet decided to abolish the Additional Retail Excise Duty (ARET) imposed on bars. The move aims to remove long-standing price disparities between liquor sold in retail outlets and bars. According to officials, the abolition of ARET will lead to a revenue loss of nearly Rs. 340 crore. However, the government plans to offset this shortfall through other measures.
Liquor Prices Hiked Selectively
At the same time, the government approved a Rs. 10 hike on the Maximum Retail Price (MRP) of most liquor bottles. This increase will apply to all bottle sizes except Rs. 99 MRP quarter bottles (180 ml), beer, wine, and ready-to-drink (RTD) beverages. These categories, commonly consumed by the general public, will remain unaffected.
Officials explained that the selective price hike seeks to ensure uniform pricing between liquor shops and bars. As a result, consumers will now see the same liquor prices across different outlets, reducing confusion and complaints.
Retailers’ Margin Increased
In another key decision, the cabinet approved a 1 percent increase in retailers’ margins on liquor sales. This measure is expected to support liquor shop licensees, who have raised concerns about rising operational costs. The government believes that the margin hike will stabilize retail operations without burdening consumers excessively.
Revenue Expected to Rise
Despite the removal of ARET, the government remains confident about revenue growth. Officials estimate that the combined impact of price revisions and margin adjustments will generate an additional Rs. 506 crore for the state exchequer. Therefore, the cabinet sees the revised policy as both revenue-neutral and growth-oriented.
Green Signal for Microbreweries
Along with tax and pricing changes, the cabinet also approved the establishment of new microbreweries. These will be permitted in three-star and above hotels located within five kilometers of municipal corporation limits. The move aims to promote tourism, encourage investment, and offer consumers more choices.
Major Shift in Liquor Policy
Overall, these decisions mark a notable shift in Andhra Pradesh’s liquor sales policy. By balancing tax relief, price adjustments, and investment-friendly measures, the government expects smoother operations and higher revenues. Officials stated that the revised policy would benefit consumers, retailers, and the state economy alike in the long run.
