Liquor to get costlier, over 150 vends to be closed down in villages

The Cabinet passed the excise policy 2025-26, making liquor costlier, while 152 liquor vends will be closed down in rural areas.

The policy includes a provision that no liquor outlet will be opened in villages with a population of less than 500. About 152 outlets in over 700 villages will now be closed. However, there will be no change in the number of shops. As before, 2,400 shops will be allocated.

Revenue target up

A major structural reform introduced in the policy is the realignment of the policy year with the financial year. The current policy will operate from June 12, 2025, to March 31, 2027, for 21.5 months, after which future policy cycles will be aligned with the April-March financial year.

The revenue target for 2025-26 is Rs 14,064 crore. Sources said for achieving a hike of 10.7%, the liquor prices will be hiked from 5% to 10%.

Stricter norms

The distance of liquor shops from bus stands, schools, colleges, religious places, etc., has been set at 150 metres. Previously, the Excise Commissioner could have relaxed the distance to 75 metres for urban retail outlets.

The policy also provides that no liquor shop or outlet should be directly visible from national or state highways. They will also not be allowed to display any advertisements or signboards.

All forms of advertisement, including any within the licensed zone, are now prohibited. In case of violations, Rs 1 lakh will be charged as penalty for the first offence, Rs 2 lakh for the second, and Rs 3 lakh for the third.

Tavern fee hiked

A fee of 4% of the licence fee must be paid in Gurugram to open a tavern. It will be 3% in Faridabad, Sonepat, and Panchkula; and 1% in other districts. Earlier, it was 3% in Gurugram, 2% in Faridabad, Panchkula and Sonepat; and 1% in remaining districts.

A maximum area of 1,000 sq metres has been set for a tavern and the policy prohibits live singing, dancing or theatrical performances within the taverns. Vends in urban areas shall not be permitted to open after 4 am, as against the earlier provision of 8 am.

Obtaining temporary licences for events has been rationalised. In unregistered commercial venues, higher licence fees will be charged for a day licence, especially in urban areas like Gurugram, Faridabad, and Panchkula.

The policy mandates all retail vends and sub-vends to display the warnings “Consumption of Alcohol is Injurious to Health” and “Do Not Drink and Drive” on their signboards.