Andhra Pradesh: New Excise Policy Announced for 3,736 Shops

Vijayawada: The Andhra Pradesh government has announced the new excise policy under which a total of 3,736 shops would get licence (3,396 under the open category and 340 shops reserved for Geetha Kulalu) from this October 1 to Sept 30 next year.

Revenue (excise) principal secretary Mukesh Kumar Meena issued GO Ms 579 here and announced the new excise policy for shops for 2026-27 on Friday. Accordingly, the notification has been published in the extraordinary issue of the AP Gazette.

As per new excise policy, the government would renew licence for all the existing shops -- initially for one year from 01-10-2026 to 30-09-2027 on payment of a renewal Retail Excise Tax computed at 38 per cent of the annual RET.

This is in addition to annual RET and RET towards Permit Room at the rates applicable for the excise year 2025-26. The renewal RET shall be collected as one lump sum.

The annual Retail Excise Tax for 2026-27 for Open and Reserved Category Shops is fixed on the criteria of population.

If the population of mandal/nagar panchayat/ municipality/municipal corporation (as per 2011 census) is up to 50,000, the RET is `60.5 lakh for open category and `30.3 lakh for reserved category.

Similarly, if the population is from 50,000 to five lakh, the RET is `71.5 lakh for open category and `35.8 lakh for reserved category. If the population is above five lakh, the RET is `93.5 lakh for open category and `46.8 lakh for reserved category.

The annual RET may be paid either in one lump sum or in four equal installments.

The government fixed RET towards Permit Room fee for open category and reserved category shops. If the population of mandal/nagar panchayat/ municipality/municipal corporation (as per 2011 census) is up to 50,000, the RET for Permit Room Fee for open category and reserved category is `5 lakh each.

Similarly, if the population is from 50,000 to five lakh, the RET for Permit Room Fee is `7.5 lakh each for open category and reserved category.

If the population is above five lakh, the RET for Permit Room Fee is `7.5 lakh for both open category and reserved category.

The Permit Room RET may be paid either in one lump sum or in three equal installments.

Renewal shall be subject to payment of renewal RET at the rates given for each population slab in the form of RET. If the population of mandal/nagar panchayat/ municipality/municipal corporation is up to 50,000, the Renewal RET is `23 lakh for open category and `11.5 lakh for reserved category.

Similarly, if the population is from 50,000 to five lakh, the Renewal RET is ` 27.2 lakh for open category and `13.6 lakh for reserved category.

If the population is above five lakh, the Renewal RET is `35.5 lakh for open category and `17.8 lakh for reserved category. The Renewal RET shall be paid in one lump sum along with the first instalment of the annual RET.

The non-renewed shops shall be disposed of by drawal of lots within the existing framework of the AP Excise Rules, 2024 on payment of the non-refundable application fee of `3 lakh per application, annual RET and applicable RET towards Permit Room at the rates prevailing for the excise year 225-26.

Every renewed licensee and selected applicant shall comply with MRP discipline and not involve in any cases relating to non-duty paid liquor or spurious liquor.

Any first offence relating to MRP violation, NDPL sale, brand mixing/dilution or non-maintenance of inventory will attract a penalty of `10 lakh.

Every licensee shall be required to maintain the hardware and software for acceptance of digital payments and shall accept cash and digital mode of payment at the choice of consumer.

The excise department shall maintain strict surveillance and enforcement against unauthorised sale points of liquor, the government said.