2% Cess on Liquor Under New Liquor Policy in AP

Vijayawada: The Andhra Pradesh Government has decided to levy a 2 per cent Cess on liquor, under the new liquor policy that comes into force from October 16.

The government stated that this is to fund efforts for narcotics control, de-addiction centres, and for opening and maintenance of rehabilitation and counselling centres, so as to ensure that “these public services receive the necessary funds for their effective operations.”

Principal secretary to revenue (excise), Mukesh Meena, issued GO-MS 230 on Tuesday for the levy of drug control & rehabilitation cess on IMFL, foreign-made liquor, beer, wine and ready-to-drink varieties.

The order said the government has reviewed the excise policies implemented during 2019- 24 and prepared the way forward regarding the Excise policies that are to be pursued for the coming years.

A cabinet sub-committee has been constituted for recommending draft new comprehensive excise policy on retail trade, pricing of liquor and taxation. Accordingly, the cabinet sub- committee has submitted its recommendations and these have been approved by the government. Orders have been issued by formulating the new excise policy on retailing, pricing and taxation.

The Director, Prohibition and Excise, has submitted proposals for the levy of a Drug Control & Rehabilitation Cess at the rate of 2 per cent on the landed cost of IMFL, foreign liquor, beer, wine and ready-to-drink varieties, Meena said.

No retailer margin shall be allowed on the Rehabilitation Cess.