Under the 2020-21 excise policy of Uttar Pradesh, the excise duty on one bulk litre of draught beer has been reduced from Rs.150 to Rs.60. This step could facilitate the growth of microbreweries in the state.

Under the new policy, country-made liquor shops’s licence fee has been enhanced by 10 per cent. The license fee for beer shops has been escalated by 15 percent, while the license fee for foreign liquor outlets has been enhanced by a significant 20 percent.

However, super premium brands of liquor costing Rs.5000 per bottle or more would become slightly cheaper in UP under the new excise policy, because of rationalisation of duty structure. Moreover, under the new excise policy of UP, which was passed by the UP Cabinet on 21st January, wine would be permitted to be sold in beer shops.

“The government has made a simple and transparent excise policy. Renewal of licences will be done through e-lottery. Under the new policy, one person will be allowed to have only two shops in the state,” Principal Secretary, Excise, Sanjay Bhoosreddy said. He also informed that under the new excise policy, bar codes will be put on all liquor bottles sold in the UP which will enable the consumers to ascertain whether liquor is real or not.

Bhoosreddy also informed that under the new excise policy, the licence fee to serve liquor in hotels located in small towns of UP will be Rs 2.5 lakh per year. Moreover, licence fee will be levied for serving liquor in luxury trains and cruises within the boundaries of Uttar Pradesh, which earlier was free.

The new excise policy has ensured availability of liquor in the state throughout the year. Usually several brands and varieties of alcoholic beverages in the state run out of stock at the beginning of the new financial year due to licensing rigmarole.

The UP government has envisaged a target of Rs 31,600 crore in excise collection during 2020-21 fiscal.