Andhra Pradesh liberalises excise policy: Premium liquor stores and strict regulations coming up

The Andhra Pradesh government has notified its new excise policy for the period from October 12, 2024, to September 30, 2026. The revamped policy is projected to generate 5,500 crores in revenue. As part of the liberalisation, the state will privatise retail operations, notifying 3,736 retail outlets to cater to consumers across the state.

Retailers are expected to benefit from the policy, with a 20% margin on the issue price, including Indian-made foreign liquor (IMFL), foreign liquor (FL), beer, and wine.

Additionally, the state has introduced a premium retail category. Now, 12 premium stores are set to open in major cities such as Visakhapatnam, Vijayawada, and Rajamahendravaram. These stores, covering a minimum area of 4,000 square feet, will offer a high-end retail experience, stocking premium brands and liquor accessories.

The state will reduce the number of tax heads from 10 to 6, streamlining operations for both businesses and authorities. Retail excise taxes will be levied based on population slabs, ranging from 50 lakh for small mandals to 85 lakh for larger cities.

Additionally, strict regulations are being put in place for the sale of Indian-made foreign liquor (IMFL) and foreign liquor (FL).

The policy also mandates the use of CCTV surveillance in all retail shops and GPS-enabled vehicles for liquor transportation, enhancing transparency and monitoring.

The government has also announced plans for awareness campaigns to educate the public about the harmful effects of alcohol consumption and will establish de-addiction centres in collaboration with the health department.

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