Naidu calls for structural reforms in excise policy
Chief Minister N Chandrababu Naidu holds a review on excise department at the Secretariat on Monday
- Orders strict action against illegal belt shops, study of excise levies
- From April 1 to Dec 17, liquor sales increased by 4.52%
- Beer sales surged by 94.93%, IMFL sales up 19%
- AP’s per capita liquor consumption less than in Telangana
Amaravati: The Andhra Pradesh government has projected liquor revenue of Rs 8,422 crore during the final quarter of the current financial year even as Chief Minister N Chandrababu Naidu on Monday stressed that the state’s Excise policy must move beyond revenue maximisation and focus on regulation, transparency and public interest.
Reviewing the performance of the Prohibition and Excise department at the Secretariat, the Chief Minister said liquor should not be treated differently from other consumer products and cautioned against viewing excise policy purely as a business model. He directed officials to undertake a comprehensive review of the existing system, including the lottery-based allocation of liquor shops, application fees, retailer margins and the overall structure of excise levies. He also asked officials to examine the feasibility of exempting bars from the Additional Retail Excise Tax (ARET).
Officials informed the Chief Minister that against a revenue target of Rs 8,000 crore for the October 2024–October 2025 period, the state had realised Rs 7,041 crore. From April 1 to December 17 of the current financial year, liquor sales increased by 4.52 per cent. IMFL sales rose by 19.08 per cent, while beer sales surged by 94.93 per cent. Overall excise revenue is expected to register a growth of about 3 per cent by the end of the year.
Despite higher growth rates, officials noted that Andhra Pradesh’s per capita liquor consumption remains lower than Telangana’s. Digital payments now account for nearly 35 per cent of liquor sales, with some districts reporting digital transaction levels of up to 47 per cent.
Naidu ordered strict action against illegal belt shops, called for faster digitalisation to curb cash transactions, and directed the early introduction of a bottle-wise Liquor Identification Number to eliminate counterfeit liquor and ensure full supply-chain transparency through geo-tagging. Ministers Kollu Ravindra and Kondapalli Srinivas, along with senior Finance and Excise officials, attended the review.
