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The Telugu Desam Party (TDP)-led government in Andhra Pradesh has abolished the Additional Retail Excise Tax (ARET) that was levied on liquor supplied to bars. The decision was implemented on Tuesday, January 13, and aims to bring parity in liquor pricing between bars and retail shops.
Andhra Pradesh Excise Principal Secretary Mukesh Kumar Meena issued orders through GO Ms No 24, removing the levy that had been in force since November 2019. The government said the move was part of reforms to rationalise excise policy.
According to officials, invoice prices of Indian Made Foreign Liquor (IMFL) and Foreign Liquor (FL) supplied by the Andhra Pradesh State Breweries Corporation Limited (APSBCL) depots were uniform for both bars and retail shops. However, the introduction of ARET created a disparity, with bars paying higher rates for identical products. The government noted that this differential treatment was inconsistent with the principle of uniform taxation and led to market distortions.
The latest order amends the AP Excise (Grant Of License Of Selling By Bar And Conditions Of License) Rules, 2025, by deleting provisions related to ARET. The decision comes after a comprehensive review of excise policies implemented during the YSRCP’s rule from 2019 to 2024 and the formulation of a way forward for future excise policies.
In October 2024, the Andhra Pradesh government notified a new Excise Policy for 2024-26, allowing private retailers to sell liquor. The policy specified retail margins for private establishments, licence fees, and guidelines for issuing licences to individuals for selling liquor among other details.