A.P. govt. removes Additional Retail Excise Tax on bars

The Andhra Pradesh government has withdrawn the Additional Retail Excise Tax (ARET) levied exclusively on liquor supplied to bars, bringing parity with retail shops and correcting a long-standing pricing anomaly.

Principal Secretary, Excise Department, Mukesh Kumar Meena issued the orders on Tuesday, following approval of recommendations made by a Group of Ministers (GoM).

The decision comes after a comprehensive review of excise policies implemented between 2019 and 2024 and the formulation of a “Way Forward” for future excise years.

A GoM was constituted in August 2024 to recommend a new, comprehensive excise policy covering retail trade, liquor pricing and taxation. The GoM, which met periodically, discussed the issue of ARET in its meeting held on December 22, 2025.

The government noted that prior to November 2019, the invoice price of Indian Made Foreign Liquor (IMFL) and Foreign Liquor (FL) supplied by APSBCL depots was uniform for bars and retail outlets. However, the introduction of ARET exclusively for bars from November 2019 resulted in higher prices for bars, leading to market distortions and lack of uniformity in taxation.

Accepting the GoM’s recommendations, the government decided to amend the AP Excise (Grant of Licence of Selling by Bar and Conditions of Licence) Rules, 2025, removing the levy of ARET on IMFL and FL purchased by bar licensees from APSBCL depots.