Andhra Pradesh Cabinet Approves Moderate Liquor Price Hike to Boost Revenue
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The Andhra Pradesh cabinet, led by Chief Minister N Chandrababu Naidu, has approved a ₹10 price increase for bottles of India-Made Foreign Liquor (IMFL) and foreign liquor. The move aims to generate an estimated ₹1,391 crore in additional annual revenue for the state. However, this increase will not apply to cheaper liquor, beer, wine, or ready-to-drink varieties. The cabinet also decided to withdraw the additional retail excise tax imposed on bars, which is expected to reduce their financial burden by around ₹340 crore per year. This change aims to create price parity between bars and retail shops, which have faced disparities due to different billing prices for the same products. In addition to the price hike, the cabinet has approved the establishment of microbreweries in areas within 5 kilometers of municipal corporation limits, notified tourist centers, and 3-star and above hotels. This move is expected to boost hospitality and tourism-driven investments. The cabinet has also approved the formation of the Andhra Pradesh Logistics Fund, an Alternative Investment Fund (AIF), to mobilize institutional capital for logistics and industrial infrastructure. The state government will contribute 10-20% of the total corpus, and a professional Asset Management Company (AMC) and a Trustee will be appointed to ensure efficient management and governance.
