Increased Fees and Duties : JK Govt. Announces Revised Excise Policy for 2025-26

Published On: February 16, 2025

The Finance Department of Jammu and Kashmir has introduced the new Excise Policy for 2025-26, which will be effective from April 1, 2025. The policy focuses on boosting revenue generation by significantly increasing various license fees and excise duties without increasing the number of liquor vends across the Union Territory.

Higher Registration Fees for Liquor Vends

Under the revised policy, the non-refundable registration fee for participating in the e-auction of retail liquor vends has been raised from ₹50,000 to ₹75,000. Additionally, the minimum reserve bid price is now linked to the potential of each liquor vend to ensure fair pricing and optimal revenue generation.

Revised Label Fees and Excise Duty Adjustments

The policy has introduced a hike in Label Fees for liquor brands. Except for JK Special Whisky and JK Country Liquor, the Label Fee has increased from ₹50,000 to ₹75,000.

Additionally, there is an excise duty increase of ₹5 per liter on the following liquor categories:

Premium, Medium, Economy, and Low-Cost Brands
Wine and Beer/Draught Beer

For JK Special Whisky, excise duty has been increased from ₹250/LPL to ₹258/LPL.

Assessment Duty Hike for Retail Vends

Retail vends (Type B and C Licenses) will now pay a higher Assessment Duty, as per the following revisions:

IMFL (750ml bottle): ₹64 to ₹65 per bottle
JK Special Whisky (750ml bottle): ₹32 to ₹34 per bottle

Increased Processing Fees for License Alterations

For shifting, addition, or alteration of licensed premises, the processing fees have been revised as follows:

Type A, B, and C Licenses: ₹20,000
Type F Licenses (Bottling Plants): ₹25,000

Fee Revision for Liquor Service on Social Occasions

Previously set at ₹5,000 and ₹10,000, the new uniform fee for serving liquor at social events is now ₹7,000 per occasion.

Increased License Fees for JKEL-1A and Type F Licenses

The JKEL-1A License Fee has been raised from ₹3 lakh to ₹4 lakh, while the Type F License Fee has been increased from ₹9 lakh to ₹10 lakh.

Hike in Debonding, Quota Transfer, and Stock Transfer Fees

The Debonding Fee (where bottling fees are not applicable) has increased from ₹4/BL to ₹5/BL.

The Quota Transfer Fee has doubled from ₹1 to ₹2 per 750ml bottle of JK Special Whisky and JK Country Liquor.

The Stock Transfer Fee has been revised from ₹0.50 to ₹1 per bottle for JKSW, IMFL, BIO, Beer, Wine, RTD, and JK Country Liquor.

Updated Excise Duty Structure for Various Liquor Categories

Premium/Medium Whiskey: ₹290/LPL (from ₹285/LPL)
Economy Whiskey: ₹280/LPL (from ₹275/LPL)
Low-Cost Whiskey: ₹260/LPL (from ₹255/LPL)
Wine: ₹85/BL (from ₹80/BL)
Beer/Draught Beer: ₹35/BL (from ₹30/BL)

No Increase in Liquor Vends, Focus on Responsible Sale

Despite the duty hikes, no new liquor vends have been proposed for the policy year 2025-26, ensuring a controlled and responsible alcohol distribution system. The prohibition on the sale of liquor to individuals below 21 years will continue.

Strict Penalties for Overpricing Liquor

The policy enforces strict action against retailers selling liquor above the Maximum Retail Price (MRP). The penalties include:

First offense: ₹40,000 fine
Second offense: ₹75,000 fine
Third offense: ₹1 lakh fine
Fourth offense: License cancellation and forfeiture of Earnest Money Deposit (EMD)

Excise Department’s Role in Liquor Trade Regulation

The Excise Department is responsible for regulating the manufacturing and trade of liquor through licensing for manufacturing, wholesale, and retail vends. The annual Excise Policy outlines the framework for duties, levies, and license fees to maintain a structured liquor trade system.

The Excise Policy 2025-26 aims to maximize revenue while maintaining social responsibility by keeping liquor distribution in check. With higher fees and excise duties, the government seeks to optimize revenue generation without increasing liquor outlets, ensuring a balanced approach to alcohol regulation in Jammu and Kashmir.