The Government of Rajasthan on February 05, 2025, issued the Excise and Liquor Control Policy Year 2025-29.
This policy has been issued with the objective of increasing the financial resources of the state by regulating and controlling the activities related to the manufacture, transportation, import, export, sale and possession of intoxicants, especially liquor.
In addition, the policy's objective is to prevent handmade and illegal liquor and discourage liquor consumption by publicizing the ill effects of alcohol among the general public and liquor consumers so that awareness can be created for the restrained consumption of liquor as a responsible citizen. Apart from this, providing quality liquor to consumers at reasonable prices and preventing the loss of excise revenue through the provisions and preventive activities contained in this policy is also an important objective of the policy.
To achieve the above objectives, provisions have been made after giving due consideration to the following points in determining the Excise and Drug Control Policy:-
• The Excise and Liquor Restraint Policy in the state has been issued every year or sometimes for two years. In other states of the country also, there is a practice of issuing annual Excise Policy in a similar manner, while for other sectors, long-term policy is issued. The government has issued separate policies for almost all sectors in the year 2024-25, whose operational period has been uniformly fixed till March 31, 2029.
• To make the liquor business competitive, to provide reasonable returns to the licensees associated with this business on the capital investment made by them and to provide liquor to the consumers as per their choice at a competitive price, a provision has been made in this policy to give freedom to the manufacturers/suppliers to determine EDP/EBP/EWP within a certain limit and to increase/decrease it.
• To keep small production units such as bottlers competitive, who do not get the benefit of economies of scale, a provision has been made to increase the limit of 3 lakh bulk litres per year to 6 lakh bulk litres per year for purchasing ENA from outside the state and bringing it into the state.
• At present, excise duty on country liquor and RML is determined based on per LPL. In this system, an increase in EDP does not affect the excise duty. Due to this, when the guarantee of shops increases, the quantity of country liquor also increases in the same proportion. To relate the excise duty with the EDP of country liquor and RML and to limit the quantity of country liquor, it has been decided to determine the excise duty ad-valorem as a percentage of the issue price instead of per LPL.
• Similarly, provisions have been made in the policy to simplify the duty system and retailer margin by reducing the currently prescribed slabs for excise duty and retailer margin of IMFL beer etc. through rationalization.
For more details, please refer to the document provided below.
[Notification No. 4(1) Finance/Ab/2025]
