The Uttar Pradesh government, under the leadership of Chief Minister Yogi Adityanath, approved the Excise Policy for the financial year 2025-26 during a cabinet meeting held on Wednesday.
Unified Sales Counters for Alcohol
A significant change in the new excise policy is the introduction of composite liquor outlets. These outlets will now sell beer, liquor, and wine from a single counter, eliminating the need for separate licenses and counters for beer, which was previously the norm.
License Allocation via E-Lottery
Excise Minister Nitin Agarwal announced that liquor shop licenses will be allocated through an e-lottery system, and existing licenses will not be renewed. License renewal will only resume in the 2026-27 financial year.
Price Increase Expected
Sources indicate that the new policy may lead to an increase in alcohol prices across the state.
Revenue Goals
The government has set an ambitious revenue target of ₹55,000 crore from excise collections for 2025-26, which is ₹4,000 crore higher than the previous financial year.
Restrictions on Licenses
To prevent monopolization, no individual, company, or firm will be allowed to hold more than two licenses. Additionally, the fee for renewing premium retail shop licenses has been fixed at ₹25 lakh annually, with no changes to the overall license fee structure.
Location Restrictions
Premium liquor shops will not be allowed inside multiplex areas of malls. However, they will be permitted in the main buildings of airports, metro stations, and railway stations, provided they obtain a no-objection certificate from the relevant authorities.
Entry and Sales Changes
The requirement for these shops to have their main entrance inside the building has been removed. For the first time, the policy also allows the sale of 60 ml and 90 ml bottles of foreign liquor.
Personal Home Licenses
The procedure for obtaining a personal home license, which allows individuals to purchase, transport, and store liquor beyond the usual retail limits for personal use, has been simplified.
Fee Structure: Applicants must pay an annual fee of ₹11,000, along with a security deposit of ₹11,000.Eligibility Criteria: Applicants must have been income taxpayers for three consecutive years, with at least two years in the 20 percent tax slab. Individuals earning taxable agricultural income but exempt from income tax are also eligible.
Aseptic Brick Packaging
To combat adulteration and ensure quality, the policy mandates that country liquor be sold in aseptic brick packs, which offer better quality control and reduce contamination risks.
The revised excise policy aims to simplify licensing procedures, enhance state revenue, and introduce consumer-friendly measures while maintaining strict regulatory oversight. With these reforms, the Uttar Pradesh government seeks to streamline the alcohol distribution system and improve safety standards.