The Andhra Pradesh government has introduced a revamped liquor policy paving the way for private retailers to sell alcoholic beverages drawing inspiration from states like Haryana. The new policy, set to be implemented from October 12, 2024, aims to generate approximately Rs 5,500 crore in revenue, according to the official notification issued on September 30, 2024.
In a significant shift, the government has permitted the operation of 3,736 private liquor shops across the state, with a focus on affordability. To curb the consumption of illegal alcohol, the state will introduce low-cost liquor options priced at Rs 99 or below, encouraging national brands to join this pricing model as well, a report on Economic Times.
Under the policy, private individuals or entities will be allowed to sell both Indian-made foreign liquor (IMFL) and foreign liquor (FL) through a selection process. Licenses will be valid from October 12, 2024, to September 30, 2026, with 3,396 shops falling under the open category and 340 shops specifically allocated to the 'Geetha Kulalu' community, a local toddy community. This allocation aims to promote social justice and empower toddy tappers.
The selection of licensees will be done via a draw of lots and applicants can apply for multiple licenses without restriction. Each applicant must pay a non-refundable fee of Rs 2 lakh per shop, as per a report on PTI. Retail excise taxes (RET) will vary based on location, ranging from Rs 50 lakh for areas with a population of 10,000 to Rs 85 lakh for larger municipalities. These rates will increase by 10% in the second year of the license period, with the government expecting substantial returns.
Licensees will be required to pay the annual excise tax in six advance installments. Retailers will receive a 20% margin on the issue price of all categories, including beer, wine, and ready-to-drink beverages.
Additionally, the government plans to introduce 12 premium stores across major cities like Vijayawada, Visakhapatnam, and Rajamahendravaram. These high-end outlets will provide a more upscale shopping experience and cater to urban populations.