Uttarakhand’s New Excise Policy Gets Cabinet Nod: Higher Revenue Goal and Major Reforms

Dhami Government Approves New Excise Policy, Stricter Rules on Overpricing

Uttarakhand Chief Minister Pushkar Singh Dhami’s cabinet has approved the state’s new excise policy. This time, the revenue target for the excise department has been set at ₹5,060 crore. Along with this, several provisions of the excise policy have been modified to ensure better regulation.

License Cancellation for Overpricing

Taking into account the significance of religious areas, the government has decided to shut down liquor licenses in their vicinity. The focus is on tightening control over liquor sales. As part of this, sub-outlets and metro liquor sale systems have been discontinued. Additionally, under the new policy, if any shop charges more than the MRP, the license will be revoked. The same MRP rule will also be applied to departmental stores selling liquor.

Revenue Target of ₹5,060 Crore for Excise Policy

The state has seen a significant rise in excise revenue over the past two years. For the financial year 2025-26, a revenue target of ₹5,060 crore has been set. In 2023-24, the revenue collection stood at ₹4,038.69 crore against a target of ₹4,000 crore. Similarly, for 2024-25, the revenue target was ₹4,439 crore, and so far, approximately ₹4,000 crore has already been collected.

Special Benefits for Hill Regions

The new excise policy prioritizes employment opportunities for locals. Wholesale liquor licenses will only be issued to Uttarakhand residents, boosting economic prospects within the state. To encourage wineries in hill areas, liquor units producing wine from locally grown fruits will be exempt from excise duty for the next 15 years. This is expected to benefit farmers and horticulturists financially. Additionally, export duties on liquor have been reduced to attract more investment in the sector. Special facilities will be provided to malt and spirit industries in mountainous regions.

Encouraging the Use of Local Agricultural Produce

To ensure fairness, liquor shop allocations will be done through transparent processes like renewals, lotteries, and competitive bidding. The government is also promoting the use of locally grown agricultural products in distilleries, helping farmers increase their income and expand their market reach. The 2025 excise policy also includes a public awareness campaign to educate people about the harmful effects of alcohol. This policy aims to strengthen the state’s economy while maintaining transparency and social responsibility.