Archive · 14 Jan 2026
Andhra Pradesh Abolishes Additional Excise Tax on Bars
The Andhra Pradesh government has removed a special tax on bars, which will make the price of alcohol in bars the same as in regular shops.
This change was made after a review of the rules and recommendations from a group of ministers.
The government also expanded where small breweries can operate, which is expected to help the hotel and tourism industries.
The changes are expected to reduce costs for bar owners, attract more tourists, and create jobs.
The Andhra Pradesh government abolished the Additional Retail Excise Tax (ARET) on bars, restoring price parity with retail liquor shops.
The decision was formalized through GO Ms No 24, following a review of excise policies from 2019 to 2024 and recommendations from a Group of Ministers (GoM).
The removal of ARET eliminates the price differential for Indian Made Foreign Liquor (IMFL) and Foreign Liquor (FL) supplied to bars from APSBCL depots.
The government amended the AP Excise Rules, 2025, omitting Rule 28 and related ARET conditions from bar licence formats.
The AP Star Hotels Association (ASHA) welcomed the excise policy changes, noting they will benefit the hotel and tourism sectors, attract investments, and create jobs.
- Who
- Andhra Pradesh state government
- What
- Abolished the Additional Retail Excise Tax (ARET) on bars
- When
- Effective from January 13, 2026
- Where
- Andhra Pradesh, India
- Why
- To restore price parity and eliminate market distortions
- Tax Abolished
- Additional Retail Excise Tax (ARET) on bars
- Effective Date
- January 13, 2026
- Government Order
- GO Ms No 24
- Impact
- Price parity between bars and retail shops
- Policy Review Period
- 2019 to 2024
- Microbrewery Expansion
- 5-km radius of municipal corporations, tourism centers, and 3-star+ hotels
- Maximum Retail Price Increase
- Rs 10
