Cabinet Approves New Excise Policy 2025-26 Under CM Mann’s Leadership
Policy Aims to Generate Rs. 11,020 Crores in Excise Revenue, Marking an 8.61% Increase Over Previous Year
Excise Collections Show Steady Growth Under Bhagwant Mann Government
Collections Rose from Rs. 4,405 Crores During Akali Regime to Rs. 6,254 Crores Under Congress Rule
Chandigarh, February 27:
The Punjab Cabinet, led by Chief Minister Bhagwant Singh Mann, has approved the Excise Policy for 2025-26, targeting an excise revenue of Rs. 11,020 crores for the financial year 2025-26. This marks an increase of Rs. 874.05 crores (8.61%) over the previous year’s target.
The decision was made during a meeting of the Council of Ministers chaired by the Chief Minister at his official residence.
A spokesperson from the Chief Minister’s Office revealed that the state government has already collected Rs. 10,200 crores against the target of Rs. 10,145 crores set for the 2024-25 fiscal year. This is the first time excise collections in Punjab have crossed the Rs. 10,000 crore mark, reflecting a steady upward trend under the current administration. In comparison, excise revenue during the final year of the SAD-BJP alliance was Rs. 4,405 crores, and Rs. 6,254 crores during the last year of Congress rule.
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Key Features of the New Excise Policy 2025-26:
- E-Tendering for Retail Licenses: To ensure fair participation, fresh allotment of L-2/L-14A vends for 2025-26 will be conducted through e-tendering. The group size for the year has been set at Rs. 40 crores.
- Increased Country Liquor Quota: The quota for country liquor (Punjab Medium Liquor) has been raised by 3% to 8.534 crore proof liters to meet demand and boost revenue.
- No Hike in Country Liquor Rates: Prices of country liquor will remain unchanged for 2025-26.
- Relief for Defence Personnel: The license fee for wholesale licenses for defence forces has been reduced by 50%, from Rs. 5 lakhs to Rs. 2.5 lakhs.
- Tourism Promotion: License holders of farm stays can now possess up to 36 quarts of Indian Made Foreign Liquor (IMFL), up from 12 quarts, along with increased limits for beer, wine, gin, vodka, brandy, RTDs, and other liquor products.
- Model Shops Mandatory: Retail licensees in Municipal Corporation areas must set up one Model Shop per group to enhance consumer experience.
- Reduced Fees for Beer Shops: Standalone beer shop fees have been slashed from Rs. 2 lakh to Rs. 25,000 per shop.
- New Bottling Plants Allowed: To attract investment, new bottling plants will be permitted in Punjab.
- Increased Cow Welfare Fee: The fee has been raised by 50%, from Rs. 1 per PL to Rs. 1.5 per PL, boosting revenue from Rs. 16 crores to Rs. 24 crores.
- Excise Police Stations Proposed: To strengthen enforcement, the establishment of Excise Police Stations is planned for the coming fiscal year.
- Ease of Doing Business: Liquor brands with no increase in Ex-Distillery Price (EDP) will receive automatic approval through the e-abkari portal.
Cabinet Approves Formation of “Punjab Tirth Yatra Samiti”
The Cabinet also greenlit the formation of the “Punjab Tirth Yatra Samiti” to facilitate convenient pilgrimages for Punjab residents under the Mukh Mantri Tirth Yatra Scheme. Launched in 2023-24, the scheme has already enabled around 34,000 pilgrims to visit religious sites via trains and buses. The Samiti will oversee travel arrangements to ensure smooth and efficient operations.
PICTC Designated Sole Provider of Digital Signatures
The Punjab Information & Communication Technology Corporation Ltd. (PICTC) has been designated as the sole provider of digital signatures for government departments and organizations. Additionally, PICTC will handle IT and ITeG procurement in line with the Punjab Transparency in Public Procurement Act, 2019. The Cabinet also formalized the bifurcation of responsibilities between the Department of Good Governance and Information Technology and Punjab Infotech to improve governance and digital transformation.
Adoption of Water (Prevention and Control of Pollution) Amendment Act, 2024
The Cabinet approved the adoption of the Water (Prevention and Control of Pollution) Amendment Act, 2024, enacted by the Indian Parliament. The Act replaces criminal liability with financial penalties for violations, promoting trust-based governance and easing compliance for businesses.
Amendments to Punjab Registration of Births and Deaths Rules, 2025
To streamline birth and death registrations, the Cabinet approved amendments to the Punjab Registration of Births and Deaths (Amendment) Rules, 2025. These changes align with the Central Government’s Registration of Births and Deaths (Amendment) Act, 2023, ensuring uniformity and simplifying processes for the public.
Annual Administrative Report of Punjab State Commission for NRIs Approved
The Cabinet also approved the Annual Administrative Report and audit report of the Punjab State Commission for NRIs for the year 2022-23.
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Creation of OSD (Litigation) Post
The Cabinet approved the creation of a temporary post of Officer on Special Duty (Litigation) in the Department of Personnel to strengthen legal oversight and support.
These decisions reflect the Punjab government’s commitment to boosting revenue, improving governance, and enhancing public services under Chief Minister Bhagwant Mann’s leadership.
