Punjab Cabinet Approves Excise Policy Targeting ₹11,020 Crore Revenue
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Synopsis
The Punjab Cabinet, under Chief Minister Bhagwant Mann, has approved the excise policy for 2025-26, targeting a revenue of ₹11,020 crore, marking an increase of ₹874.05 crore from the current fiscal year. The policy includes several measures aimed at boosting revenue and improving public services.
Key Takeaways
- Excise revenue target set at ₹11,020 crore
- 3% increase in country liquor quota
- 50% reduction in wholesale license fee for defense
- Model shop requirement in municipal areas
- Standalone beer shop fee reduced to ₹25,000
Chandigarh, Feb 27 (NationPress) The Punjab Cabinet, led by Chief Minister Bhagwant Mann, has approved the excise policy for 2025-26, aiming to generate a revenue of ₹11,020 crore, which marks an increase of ₹874.05 crore compared to the current fiscal year.
A representative from the Chief Minister’s office indicated that, against the revenue target of ₹10,145 crore set for 2024-25, the government has already collected ₹10,200 crore to date.
The excise revenue is on an upward trend during the current administration, having surpassed the ₹10,000 crore milestone for the first time, as noted.
Under the previous SAD-BJP coalition, excise revenue stood at ₹4,405 crore, while the last year of the Congress administration reported merely ₹6,254 crore, according to the spokesperson.
The updated policy specifies that to balance the existing retail sector and enhance participation opportunities, new allotments of L-2/L-14A vends for 2025-26 will be conducted via e-tendering.
The group size for 2025-26 has been established at ₹40 crore.
To boost revenue and ensure sufficient availability of country liquor, the quota for country liquor (Punjab medium liquor) has been set at 8.534 crore proof litres, reflecting a 3% increase over the previous fiscal year. However, there will be no price hike in country liquor rates under the new excise policy.
To provide relief to the armed forces, the wholesale license fee has been slashed by 50%, reducing it from ₹5 lakh to ₹2.5 lakh.
To boost tourism, the possession limit for license holders of farm stays has been increased from 12 quarts of Indian Made Foreign Liquor (IMFL) to 36 quarts, along with an increase in allowed quantities of beer, wine, gin, vodka, brandy, and other liquor products. To enhance consumer experience, a model shop in each group has been mandated for retail licensees within municipal corporation areas.
The fee for standalone beer shops has been reduced significantly from ₹2 lakh per shop to ₹25,000 per shop.
To encourage new investments, new bottling plants have been permitted to be established in Punjab.
The Cabinet also approved the adoption of the Water (Prevention and Control of Pollution) Amendment Act, 2024, enacted by Parliament. This Act replaces criminal liability with financial penalties, stating that violations will be addressed through financial penalties imposed by an adjudicating officer.
To streamline the process of registering births and deaths, the Cabinet sanctioned amendments to the Punjab Registration of Births and Deaths (Amendment) Rules, 2025, aiming to bring consistency to the Act and significantly aid the public, as stated by the spokesperson.
