Punjab Cabinet Approves New Excise Policy for 2025-26 Aiming for Rs 11,020 Crore Revenue

The Punjab Cabinet has approved a new excise policy for 2025-26, targeting revenue of Rs 11,020 crore. This decision was made during a meeting led by Chief Minister Bhagwant Mann. Finance and Excise Minister Harpal Singh Cheema announced that the department aims to gather Rs 10,200 crore by March 2024, surpassing the previous target of Rs 10,145 crore for 2024-25.

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Cheema highlighted that excise collections have significantly increased under the current administration. For the first time, collections exceeded Rs 10,000 crore. In contrast, the last year of the SAD-BJP alliance saw collections at Rs 4,405 crore, and the previous Congress regime collected Rs 6,254 crore. The new policy includes e-tendering for liquor vend allotments.

Excise Policy Changes and Revenue Targets

The quota for country-made liquor will rise by 3%, with Punjab Medium Liquor set at 8.534 crore proof litres for 2025-26. This increase aims to boost revenue and ensure sufficient availability. Additionally, new excise police stations will be established to enhance enforcement, with a committee already formed to oversee this initiative.

The cow welfare cess has been raised from Re 1 to Rs 1.50 per proof litre, potentially increasing revenue from Rs 16 crore to Rs 24 crore. However, there will be no change in country liquor prices for the financial year 2025-26. To support defence forces, their wholesale licence fee has been halved from Rs 5 lakh to Rs 2.5 lakh.

Tourism Promotion and Consumer Experience Enhancements

To encourage tourism, farm stay licence holders can now possess up to 36 quarts of Indian Made Foreign Liquor (IMFL), up from 12 quarts. The possession limit for Beer, Wine, Gin, Vodka, brandy, and other liquors has also increased. Retail licensees in Municipal Corporation areas must now have one model shop per group to enhance consumer experience.

The fee for standalone beer shops has been reduced significantly from Rs 2 lakh to Rs 25,000 per shop. New bottling plants are permitted in Punjab to attract fresh investments. The Cabinet also approved forming the Punjab Tirth Yatra Samiti under the Mukh Mantri Tirth Yatra Scheme to facilitate pilgrimages by air, rail, or road.

Legislative Amendments and Environmental Initiatives

The Cabinet adopted the Water Prevention and Control of Pollution Amendment Act, 2024. This Act replaces criminal penalties with financial ones for non-compliance. It aims to decriminalize minor offences and promote trust-based governance for easier living and business operations in Punjab.

Additionally, amendments were approved for the Punjab Registration of Births and Deaths Amendment Rules, 2025. These changes aim to streamline registration processes in the state. The government continues its efforts to improve administrative efficiency and environmental governance through these legislative updates.

The Punjab Tirth Yatra Samiti will manage travel arrangements under the Mukh Mantri Tirth Yatra Scheme efficiently. Launched in 2023-24, this scheme facilitated travel for around 34,000 pilgrims to various religious sites via trains and buses.