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Liquor to Get Costlier, Over 150 Village Vends to Close as Haryana Passes New Excise Policy

Liquor to Get Costlier, Over 150 Village Vends to Close as Haryana Passes New Excise Policy

Cabinet approves excise policy for 2025-26 with stricter regulations on various things and higher revenue targets for the following fiscal year

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Haryana government has approved its excise policy for 2025-26, introducing significant changes that will impact both consumers and vendors across the state. The policy overhaul aims to boost revenue while implementing stricter regulations on alcohol sales. 

The new policy will make liquor more expensive for consumers, with prices expected to rise between 5% and 10%. This increase is part of the government's strategy to meet an ambitious revenue target of Rs 14,064 crore for the coming fiscal year, representing a 10.7% increase over previous collections. 

In a move affecting rural areas, villages with populations below 500 will no longer be permitted to have liquor outlets. This restriction will lead to closure of approximately 152 outlets across 700 villages of Haryana. The licenses will be relocated rather than eliminated as the number of shops across Haryana will remain at 2,400. 

The policy introduces a major structural reform by realigning with the financial year calendar. The current policy will run for an extended period of 21.5 months from June 12, 2025, to March 31, 2027, after which subsequent policies will follow the standard April-March financial year format. 

Location requirements for liquor establishments have become more stringent. All outlets must maintain a minimum distance of 150 meters from sensitive locations including bus stands, educational institutions, and religious places. Notably, the Excise Commissioner's previous discretionary power to reduce this distance to 75 meters for urban retail outlets has been removed. 

Additional restrictions include a prohibition on liquor shops being directly visible from national or state highways. All forms of advertisement, including signboards, are now banned. Violations of these rules will result in penalties starting at Rs 1 lakh for the first offense, increasing to Rs 2 lakh for the second, and Rs 3 lakh for the third. 

The policy has also increased tavern fees across districts. Operators in Gurugram must now pay 4% of the license fee (up from 3%), while those in Faridabad, Sonepat, and Panchkula will pay 3% (up from 2%). Fees in other districts remain unchanged at 1%. Tavern size has been capped at 1,000 square meters, and live entertainment including singing, dancing, or theatrical performances has been prohibited. 

Operating hours have also been restricted as the shops in urban areas now prohibited from opening before 4 am which is different from earlier cap of 8 am. The process for obtaining temporary licenses for events has been rationalized, with higher fees applicable for unregistered commercial venues, especially in urban centers like Gurugram, Faridabad, and Panchkula. 

All retail vendors and sub-vendors must now display warnings stating "Consumption of Alcohol is Injurious to Health" and "Do Not Drink and Drive" on their signboards.

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