Punjab News: Govt Eyes Higher Liquor Revenue, Plans 6-7% Hike in 2025-26

The Punjab Government is set to boost its revenue from liquor sales by approximately 6-7% in the fiscal year 2025-26, with the state Excise Department finalizing the new liquor policy. The policy is expected to be presented for approval in the upcoming Council of Ministers meeting later this month.

A Group of Ministers (GoM), led by Finance Minister Harpal Cheema and including ministers Kuldeep Singh Dhaliwal, Tarunpreet Singh Sondh, and Harbhajan Singh, is currently reviewing the policy. In a meeting on Tuesday, the ministers suggested revisions, asking the Excise Department to incorporate changes before finalizing the proposal. However, sources indicate that no major changes to the existing excise policy are expected, with the open quota system for Indian-Made Foreign Liquor (IMFL) likely to continue. The government is still debating whether to renew existing licences or introduce a tender-based system to maximize revenue.

Debate Over Licensing Model

Liquor contractors have expressed concerns over the tender-based system, arguing that it could create monopolistic conditions. At the same time, some contractors have also raised issues with the open quota system, citing losses due to oversupply, which has led to price wars and even smuggling of IMFL to states like Gujarat and Bihar.

Revenue Targets and Growth

The Punjab Government aims to increase excise revenue by at least ₹1,000 crore in 2025-26, exceeding the current fiscal year's target of ₹10,145 crore. As of January, the state has already collected ₹8,584.33 crore, putting it on track to surpass its target by March. Districts such as Mohali, Ludhiana, Amritsar, Patiala, and Ropar have recorded high liquor sales, significantly contributing to the state's growing revenue. The final policy details will be announced once approved by the cabinet.