New excise policy in Uttar Pradesh: Alcohol to cost more, curbs on premium shops and other big changes

Alcohol to cost more in UP from April 1

The Uttar Pradesh government has approved the Excise Policy for the financial year 2025-26 in a cabinet meeting chaired by Chief Minister Yogi Adityanath on Wednesday.

A key highlight of the new policy is that beer, liquor, and wine will now be sold from a single counter, according to sources.

UP Excise Minister Nitin Agarwal said that under the new policy, licenses of liquor shops will now be allotted via e-lottery and the old license will not be renewed. The option for license renewal will be reinstated in the financial year 2026-27.

Alcohol prices are also expected to go up in the state when the policy comes into force, sources added.

Previously, beer was sold separately, and a distinct license was required for beer sales. However, under the new policy, composite shops will be introduced, allowing the simultaneous sale of foreign liquor, beer, and wine.

On-premises consumption will not be permitted at these outlets. The government has set a revenue target of Rs 55,000 crore from excise collections, marking an increase of Rs 4,000 crore compared to the previous financial year.

Additionally, premium retail shop licenses will be renewed upon payment of an annual fee of Rs 25 lakh. The license fee structure remains unchanged from last year. To prevent monopolization, no individual, firm, or company will be allowed to hold more than two licenses.

Restrictions on premium brand shops

Under the new policy, premium brand liquor shops will not be permitted within multiplex areas of malls, sources said.

However, such outlets will be allowed in the main buildings of airports, metro stations, and railway stations, provided they receive a no-objection certificate from the competent authorities.

Notably, the requirement for these shops' main entrances to be inside the building has been removed. Furthermore, for the first time, the sale of 60 ml and 90 ml bottles of foreign liquor has been authorized.

Simplification of personal home licenses

The government has also simplified the procedure for obtaining a personal home license, which permits individuals to purchase, transport, and possess liquor beyond the standard retail limit for personal use.

The annual fee for this license has been set at Rs 11,000, with an additional security deposit of Rs 11,000.

To be eligible, applicants must have been income tax payers for three consecutive years and must have filed their income tax returns.

Furthermore, at least two of these years should reflect tax payment in the 20 percent slab. If an applicant earns taxable agricultural income but is exempt from income tax, they will still be eligible for the license.

Aseptic brick packs for country liquor

To curb adulteration and enhance safety, the policy mandates that country liquor be sold in aseptic brick packs, which offer better quality control and minimize the risk of contamination.

The UP government is hoping to streamline licensing procedures, boost state revenue and introduce consumer-friendly reforms while maintaining strict regulatory oversight with the new policy.