Haryana revises excise policy: No liquor shops in small villages, new rules

Business Standard

06-05-2025

The Haryana Cabinet, led by Chief Minister Nayab Singh Saini, on Monday approved a new excise policy that brings a significant increase in liquor duties and introduces stricter rules for the sale, location, and promotion of alcohol across the state.
The policy, aimed at boosting revenue and promoting responsible alcohol distribution, is expected to push excise collections beyond ₹12,000 crore.
Unlike previous policies, which operated from June to May, the new excise policy will now follow the financial year. It will remain in effect until March 31, 2027. This change brings the policy cycle in line with the government's financial planning system. It marks a shift from the post-Covid approach, which had followed a June-to-May timeline.
Shops in small villages to be closed
One significant change is the prohibition of liquor shops in villages with populations below 500. This move is expected to impact around 152 shops across more than 700 villages in the state. The decision is seen as part of the government's broader effort to regulate alcohol availability in smaller and sensitive areas.
Visibility and distance rules made stricter
The government has doubled the minimum distance requirement for liquor vends from sensitive places like schools, colleges, religious places, and bus stands, from 75 metres to 150 metres.
Further, no liquor shop will be allowed to be directly visible from state or national highways. Signboards, hoardings, or advertisements that are visible from highways will also be considered violations of the new rules.
Strict penalties have been announced for those violating these visibility guidelines:
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₹1 lakh for the first offence
₹2 lakh for the second offence
₹3 lakh for the third offence
On the fourth violation, the shop's licence will be cancelled.
'These steps are being taken to limit the exposure of liquor to the general public, especially near sensitive areas and highways,' an official from the excise department said.
Excise duty increased on IMFL and country liquor
The government has also decided to increase excise duties on Indian-Made Foreign Liquor (IMFL) and country liquor by 5 per cent to 10 per cent. The increase is expected to contribute significantly to the state's revenue target of exceeding ₹12,000 crore from excise collections. 'This policy will help us increase revenue while keeping liquor sales under control,' said Chief Minister Nayab Singh Saini.
Rules for drinking areas
The new policy allows liquor vend license holders to set up drinking areas (Ahatas) within their premises, but with certain restrictions. This now requires a minimum area of 1,000 square metres for an Ahata and additional licence fees that must be paid depending on the district.
Officials say this will help ensure Ahatas are set up in properly planned spaces and not in crowded or inappropriate areas.
More reforms included in cabinet meeting
While the excise policy took centre stage, Monday's Cabinet meeting also discussed other important issues, including cow welfare, land reforms, and support for families of martyrs. Further details on these points are expected to be released by the government in the coming days.
The new excise policy reflects a clear shift in the state government's strategy—aiming to raise revenue while also regulating the liquor business more strictly and responsibly.