Andhra Pradesh has notified a new liquor policy to allow private retailers

Vijayawada: The Andhra Pradesh government has notified a new liquor policy, allowing private retailers to sell spirits on the lines of Haryana and others in the state for Rs. 5,500 crore revenue is expected.

In a complete overhaul of the excise policy based on best practices from other states, Andhra Pradesh has decided to allow retail sale of liquor through 3,736 notified private shops across the state.

As per the notification dated September 30, 2024, the new policy will come into effect from October 12, 2024.

The notification said that permission to sell IMFL (Indian Made Foreign Liquor) and FL (Foreign Liquor) will be granted to private individuals or firms through a selection process.

The period of license to sell IMFL and FL through shops is from October 12, 2024 to September 30, 2026.

Out of the total number of shops to be licensed in 2024-26, 3,396 will be in the open category, while 340 shops will be earmarked for ‘Geetha Kulas’ (stone-piercing community) for empowerment. them and promotes equity and social justice.

The selection process for grant of license is through draw of lots and an applicant can apply for more than one shop. There is no limit on the number of shop licenses a person can hold, it added.

Applicants for each shop should pay Rs. 2 lakhs non-refundable fee is required to be deposited.

According to the notification, the Retail Excise Tax (RET) for a municipality with a population of more than 5 lakh or a municipal corporation with a population of 10,000 in the financial year 2024-2025 will be Rs. 50 lakh to Rs. 85 lakhs. It will increase by 10 percent by 2025-26.

As a result of the entire exercise, the state government is expected to earn Rs.5,500 crore. The annual RET is payable in six equal advance installments as applicable for each year during the license period 2024-26.

As per the notification, the retailer’s margin on issue price will be 20 per cent across all categories of IMFL and FL, including beer, wine and RTDs (ready to drink).

For premium stores, the notification said, “A total of 12 premium store licenses will be granted as a special category, to provide a better and higher-end retail experience in the state of Andhra Pradesh.” These premium stores are strategically located in Vijayawada, Visakhapatnam, Rajamahendravaram, Kakinada, Guntur, Nellore, Kurnool, Kadapa, Anantapur or any other cities notified by the State Government from time to time.

A Cabinet sub-committee of the state government studied the excise policies of states like Telangana, Karnataka, Tamil Nadu, Kerala, Rajasthan and Uttar Pradesh and also took extensive feedback from key stakeholders before formulating the latest policy.

It assessed the performance of the current policy against other key metrics, including public Health impact and revenue generation capacity, the state government said.