New Excise Policy comes into effect; Congress govt eyes more revenue ahead of local body elections

The Telangana government has earned Rs 2,860 crore from liquor shop applications under the new Excise Policy, which came into effect on Monday. With licence fees, tenders and taxes included, total excise earnings may cross Rs 1 lakh crore as polls approach

Hyderabad: After making a hue and cry over rising liquor sales while in opposition, the Congress government is now banking heavily on excise revenue as the new Excise Policy came into effect on Monday.

Under the new policy, which will remain in force till November 2027, all applicants who secured liquor shops through the bidding process opened their outlets from Monday.

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The Excise department has already earned about Rs.2,860 crore through the sale of liquor shop application forms in October. The department increased the non-refundable application fee from Rs.2 lakh during the BRS government period to Rs.3 lakh.

A total of 95,436 applications were filed for 2,620 liquor shops across the State. Though the number of applications saw a small dip compared to the previous term, the department earned more revenue due to the increased application fee.

The Congress government came to power in December 2023, and for the 2023-25 term the department earned Rs.2,640 crore from applications. This has now risen to Rs.2,860 crore for the 2025-27 period.

During the 2023-25 term, the department earned nearly Rs.71,000 crore through liquor sales in the State, of which close to eighty percent went directly to the State treasury, according to official sources.

With revenue generated through tenders, liquor shop licence fees and taxes from distilleries and breweries added, the cumulative earnings are estimated to cross Rs.1 lakh crore.

Liquor shop owners must pay annual licence fees based on their location and sales. In the GHMC limits, the annual fee is Rs.1.10 crore per shop, while those located within five kilometres beyond the GHMC boundary pay Rs.85 lakh. In municipalities, municipal corporations and rural bodies, the slabs are Rs.56 lakh, Rs.55 lakh and Rs.50 lakh respectively.

With Gram Panchayat elections followed by ZPTC, MPTC, municipal and municipal corporation elections ahead, liquor sales are expected to rise further, giving a big boost to excise revenue.