The Government of Andhra Pradesh (AP), on January 12, 2026, issued a notification through the Revenue Department (Excise-II) in exercise of powers under Section 22(e) of the Andhra Pradesh Excise Act, 1968, revising the structure of Additional Retail Excise Tax (ARET) on Indian Made Foreign Liquor, Foreign Liquor (spirits), Beer, Wine and Ready-to-Drink (RTD) beverages supplied to retail licensees.
The notification provides for an increase in Maximum Retail Price (MRP) by ₹10 per bottle across all sizes, except certain specified segments, along with a marginal enhancement of retailer margin by 1% of the revised MRP. The ARET has been bifurcated into ARET-1, which forms part of the issue price, and ARET-2, which is levied outside the issue price. Any differential arising due to revised MRPs on existing or in-transit stocks shall be recovered from licensees and adjusted as ARET.
The revised tax structure comes into force with immediate effect from the date and time of issue of the orders, and the Director of Excise & Prohibition, Commissioner of Distilleries & Breweries, and the Managing Director, A.P. State Beverages Corporation Limited have been directed to ensure implementation, periodic review, and compliance reporting.
[G.O.Ms. No. 23, Revenue (Excise-II)]
