The Revenue Department, Govt. of Andhra Pradesh on June 29, 2026, issued the Excise Policy guidelines for the grant of Bar Licences and Shop Licences to Airports (except Tirupati Airport).
The following has been stated:
• The Excise Policy guidelines provide for the grant of bar and shop licences in airports (except Tirupati Airport) in accordance with the Andhra Pradesh Excise Act, 1968, the AP (Regulation of Trade in IMFL/FL) Act, 1993, and the rules made thereunder. For the purpose of the policy, an airport is defined to include the terminal building and airport plaza. The airport operator is empowered to recommend eligible applicants for bar and shop licences, and such recommended applicants are required to submit applications along with prescribed non-refundable fees—₹5 lakh for bar licences in Form 1B and ₹2 lakh for shop licences in Form A-3(B)—to the concerned excise authorities.
• Upon receipt of applications, the Deputy Commissioner of Prohibition & Excise conducts a due enquiry and may grant the privilege for bars, while shop licences are issued by the District Prohibition & Excise Officer in prescribed forms, subject to fulfilment of all conditions. The validity of the licence is co-terminus with the contract period between the airport operator and the licensee or the excise licence period under relevant rules, whichever is shorter. Airport bars and shops are permitted to operate 24 hours a day, subject to airport operational protocols, security directions, and law and order requirements.
• The policy prescribes a retail excise tax of ₹1.25 crore per annum for airport bars in airports having passenger traffic of 20 lakh or more annually, and ₹15 lakh per annum for airports with lesser traffic. For airport shops, the retail excise tax is fixed at ₹1 crore per annum. Each bar licence may have up to three serving points, and each shop licence may have up to three counters without restriction on minimum plinth area.
• The policy is subject to review after three years based on passenger footfall analysis and may be amended through necessary changes to the relevant excise rules.
[Notification no. - G.O.Ms.No.386]
