UP's new excise policy: E-lottery for licences, higher alcohol prices ahead

Uttar Pradesh government approves new Excise Policy for 2025-26, introducing e-lottery for liquor shop licences, higher alcohol prices, and consumer-friendly reforms

The Uttar Pradesh government on Thursday approved the Excise Policy for 2025-26 during a Cabinet meeting chaired by Chief Minister Yogi Adityanath. Under the new policy, the management of all liquor shops in the state will be handled via an e-lottery system.

 

Excise Minister Nitin Agarwal said that under the updated policy, liquor shop licences will now be distributed through e-lottery, with no renewals for existing licences. Licence renewals will resume in the 2026-27 financial year.

 

A significant change in the policy is "composite shops," where beer, liquor, and wine will be sold from a single counter. The new policy is also expected to lead to higher alcohol prices in the state.

 

Under the previous system, beer required a separate licence, but the revised policy will create composite shops that can sell foreign liquor, beer, and wine simultaneously, according to news agency PTI. On-premises consumption will be prohibited at these outlets.

 

The government has set a target of Rs 55,000 crore in excise revenue, an increase of Rs 4,000 crore from the previous financial year.

 

In addition, premium retail shop licences will be renewed upon payment of an annual fee of Rs 25 lakh, with the licence fee structure remaining unchanged from last year. To avoid monopolies, no entity can hold more than two licences.

 

Restrictions on premium brand shops

 

According to the new policy, premium brand liquor shops will not be allowed within multiplexes or malls. However, such outlets can be established in airport terminals, metro stations, and railway stations if they secure a no-objection certificate from the relevant authorities.

 

The requirement for the shops' main entrances to be within the building has also been lifted. Additionally, the sale of 60 ml and 90 ml bottles of foreign liquor will be allowed for the first time.

 

The government has also streamlined the process for acquiring a personal home licence, which allows individuals to purchase, transport, and store liquor beyond the retail limit for personal use.

 

The annual fee for this licence will be Rs 11,000, along with an additional Rs 11,000 security deposit.

 

To qualify, applicants must have paid income tax for the last three consecutive years and filed returns. At least two of these years should show tax payments in the 20 percent slab. Individuals with taxable agricultural income but exempt from income tax are also eligible.

 

(With inputs from agencies)