Andhra Pradesh Government Announces Re-Allotment of 301 Bar Licences Following Policy Revision
The Andhra Pradesh state government has taken a significant step to address the issue of unsold bar licences by deciding to re-allot approximately 301 licences that remained unclaimed during the previous allocation schedule. This move comes after widespread protests from liquor traders who boycotted the application process in response to the additional retail excise tax (ARET) imposed by the authorities.
Background of the Licence Allocation Challenge
Initially, the government faced substantial resistance from bar operators who virtually abstained from filing applications for bar licences as a form of protest against the ARET, which had been in effect since November 2019. Although negotiations led by senior district officials helped alleviate the situation to some extent, around 30 percent of the bars still remained unsold, highlighting the depth of the traders' concerns.
After carefully reviewing the grievances raised by the liquor traders, the state government recently made a pivotal decision to waive off the ARET entirely. This policy shift is aimed at restoring price parity and reducing the financial burden on bar operators, who had long argued that the higher prices compared to retail outlets were negatively impacting their business viability.
Details of the Re-Notification Process
Prohibition and Excise Director Sridhar Chamakuri provided clarity on the re-allotment process, stating that 301 open category bar licences across the state will be re-notified under the new bar policy for the 2025-28 period. Previously, under the draw of lots system, 541 bars in the open category and 84 bars under the reserved category had already been successfully allotted.
However, 299 bar licences remained unsold, and permission has been granted for the re-notification of two additional bars—one each in Guntur and NTR districts. Consequently, the total number of licences to be re-notified now stands at 301, marking a comprehensive effort to address the shortfall in allocations.
Key Changes in the Excise Policy
The government's recent amendments to the excise policy include the abolition of the special ARET imposed on bars, a measure that has been in force for several years. By withdrawing this additional tax, the authorities aim to create a more level-playing field for bar operators, who are expected to benefit from improved margins and reduced operational costs.
Furthermore, the practice of differential pricing for the same liquor supplied to retail shops and bars has been brought to an end with the removal of the ARET. This decision is anticipated to significantly ease the financial strain on bar owners and enhance the overall competitiveness of the sector.
The re-allotment of these 301 bar licences, coupled with the tax waiver, represents a strategic move by the Andhra Pradesh government to stabilize the liquor trade, address trader discontent, and foster a more equitable business environment. This development is likely to have far-reaching implications for the state's excise revenue and the operational dynamics of bars across various districts.
