The Andhra Pradesh government has removed the Additional Retail Excise Tax (ARET) on liquor supplied to bars. The decision, which came into effect on January 13, aims to ensure that liquor prices are the same in bars and retail liquor shops.
The order was issued by Excise Principal Secretary Mukesh Kumar Meena through Government Order (GO) Ms No. 24. The extra tax had been in place since November 2019. The government said this step is part of its efforts to reform and streamline the state’s excise policy.
Officials explained that liquor supplied by the Andhra Pradesh State Beverages Corporation Limited (APSBCL) was originally priced the same for both bars and retail shops. However, after ARET was introduced, bars had to pay more for the same liquor than retail outlets. This created price differences and was seen as unfair and against the principle of uniform taxation.
By removing ARET, the government has amended the Andhra Pradesh Excise Rules related to bar licences, deleting the provisions that allowed the extra tax. The decision followed a detailed review of excise policies implemented during the previous YSRCP government between 2019 and 2024, as well as planning for future policies.
Earlier, in October 2024, the state had announced a new Excise Policy for 2024–26. This policy allows private retailers to sell liquor and lays out details such as licence fees, retail margins, and guidelines for issuing licences.
