SRINAGAR: Drinking in Jammu and Kashmir is set to become more expensive as the government has increased various excise duties and license fees under the new Excise Policy for 2025-26. The Finance Department has notified the policy, which will come into effect on April 1, 2025, to boost revenue without increasing the number of liquor vends in the erstwhile state, reports appearing in the media said.
Under the revised policy, the non-refundable registration fee for participation in the e-auction of retail liquor vends has been raised from Rs 50,000 to Rs 75,000. Additionally, the minimum reserve bid price has been revised and linked to the potential of each liquor vend. The label fee for all liquor brands has also been increased from Rs 50,000 to Rs 75,000, except for JK Special Whisky and JK Country Liquor.
The policy introduces a Rs 5 increase in excise duty on premium, medium, economy, and low-cost liquor brands, as well as wine and beer. Excise duty on JK Special Whisky has been increased from Rs 250 per LPL to Rs 258 per LPL. Similarly, assessment duty for retail vends has been increased from Rs 64 to Rs 65 per 750 ml bottle of IMFL and from Rs 32 to Rs 34 per 750 ml bottle of JKSW.
Other key changes include a revised fee structure for shifting, addition, and alteration of licensed premises, with Type A, B, and C licensees required to pay Rs 20,000 and Type F (bottling plant) licensees paying Rs 25,000. The fee for serving liquor at social occasions has been standardized at Rs 7,000 per event, replacing the earlier slabs of Rs 5,000 and Rs 10,000.
The license fee for JKEL-1A has been increased from Rs 3 lakh to Rs 4 lakh, while Type F licenses will now cost Rs 10 lakh instead of Rs 9 lakh. Additionally, debonding fees on spirits where bottling fees are not levied have been raised from Rs 4 per BL to Rs 5 per BL.
Excise duty on premium and medium whiskey has been increased to Rs 290 per LPL from Rs 285 per LPL, while the economy and low-cost whiskey now attract duties of Rs 280 per LPL and Rs 260 per LPL, respectively. Wine and beer will also be costlier, with excise duty rising to Rs 85 per BL from Rs 80 per BL and Rs 35 per BL from Rs 30 per BL.
Despite these increases, the government has not proposed any new liquor vends for the policy year 2025-26, citing social responsibility. The ban on liquor sales to persons below 21 years of age will continue. The policy also reiterates strict penalties for retailers selling liquor above the maximum retail price (MRP), with fines starting at Rs 40,000 for the first offence and going up to Rs 1 lakh for repeated violations. A fourth offence would result in the cancellation of the retailer’s license and forfeiture of their earnest money deposit.
The Excise Department regulates liquor manufacturing and trade through annual policies that outline duties, levies, and license fees. The latest policy aims to increase revenue while maintaining control over liquor distribution in Jammu and Kashmir.
