Relief for bar owners as Andhra scraps extra excise tax, brings uniform pricing on liquor

Amaravati: In a significant reform of the State’s excise policy, the Andhra Pradesh government has decided to abolish the additional retail excise tax imposed on bars.

The new policy is aimed at providing major relief to bar owners and comes into effect from January 13 (Tuesday).

Uniform pricing across retail shops and bars

With this change, there will no longer be a price difference for the same liquor sold at retail shops and bars.

Officials said the primary objective of the policy revision is to ensure uniform pricing and remove disparities in liquor pricing that had adversely affected bar businesses.

Additional tax withdrawn

The decision was formalised through orders issued by Principal Secretary (Excise Department) Mukesh Kumar Meena.

The government has withdrawn the special additional retail excise tax that had been in force since November 2019 by issuing GO 24 on Tuesday.

Bar owners hail move that puts them on par with retail shops

Bar owners have welcomed the move, noting that earlier they were forced to procure liquor at higher prices than retail shops, which affected their profitability.

They believe the latest decision will reduce costs and provide long-awaited relief to the bar industry.

The orders state that no additional tax will be levied on IMFL and FL supplied to bars from Andhra Pradesh State Beverages Corporation Limited (APSBCL) depots.

Regulatory changes to follow

In line with the revised excise policy, the government has decided to issue a fresh notification under the Excise Act and carry out necessary amendments to the 2025 bar licence rules.

The Director of Excise, the Commissioner of Distilleries, and APSBCL officials have been entrusted with the responsibility of implementing these changes.