Led by CM, Cabinet Approves New Excise Policy 2025-26

New Policy Aims to Generate Excise Revenue of Rs. 11,020 Crores with an Increase of 8.61% Compared to Last Year

Excise Collection Witnesses Steady Surge in State During the Bhagwant Mann Regime

Collection Was Merely Rs. 4,405 Crore in Akali Regime and Rs. 6,254 Crore in Congress Rule

Chandigarh, February 27, 2025:  

The Punjab Cabinet, led by Chief Minister Bhagwant Singh Mann, approved the Excise Policy 2025-26, which aims to collect excise revenue of Rs. 11,020 crores during the financial year 2025-26, projecting an increase of Rs. 874.05 crores (8.61%) over the previous financial year’s targets.  

A decision to this effect was taken by the Council of Ministers in a meeting held under the chairmanship of the Chief Minister at his official residence today.  

Disclosing this today, a spokesperson of the Chief Minister’s Office said that against the target of Rs. 10,145 crore set during the Excise Policy 2024-25, the state government has collected Rs. 10,200 crore so far. Excise collection is witnessing a steady surge in the state during the current regime, as for the first time, the collection has crossed the mark of Rs. 10,000 crores. It is worth mentioning that the collection from excise in the last year of the SAD-BJP alliance was Rs. 4,405 crore, and in the last year of the Congress regime, it was merely Rs. 6,254 crore.  

The new policy stipulates that in order to balance the existing retail trade and to provide opportunities for better and widespread participation, fresh allotment of L-2/L-14A vends for the financial year 2025-26 will be done through e-tender. The group size for the year 2025-26 has been kept at Rs. 40 crores. To mobilize additional revenue and ensure enough availability of country liquor, the quota of country liquor (Punjab Medium Liquor) in the financial year 2025-26 has been kept at 8.534 crore proof liters, an increase of 3% over the previous financial year.  

There will be no increase in country liquor rates in the financial year 2025-26. To give relief to defense forces, the license fee of their wholesale license has been reduced by 50%, from Rs. 5 lakhs to Rs. 2.5 lakhs. To promote tourism, the possession limit of license holders of farm stays has been increased from 12 quarts of Indian Made Foreign Liquor (IMFL) to 36 quarts of IMFL, with an increase in the possession quantity of beer, wine, gin, vodka, brandy, RTD, and other liquor products. To provide a better consumer experience, one model shop in each group has been made mandatory for retail licensees in Municipal Corporation areas.  

The fee for standalone beer shops has been reduced from Rs. 2 lakh per shop to Rs. 25,000 per shop. To promote new investment in the state, new bottling plants have been allowed to be set up in Punjab. Likewise, the Cow Welfare Fee has been increased by 50%, from Rs. 1 per PL to Rs. 1.5 per PL. With this, the collection of Cow Welfare Fee will increase from Rs. 16 crores to Rs. 24 crores. To strengthen enforcement, there is a proposal to set up excise police stations in the coming financial year. To promote ease of doing business, liquor brands with no increase in EDP will receive automatic approval through the e-Abkari portal.  

Gives Nod to Constitute "Punjab Tirth Yatra Samiti

The Cabinet also gave the nod to constitute the "Punjab Tirth Yatra Samiti" with the aim of providing convenient pilgrimage to the residents of Punjab by air, rail, road, or any other possible mode in coordination with various departments under the Mukh Mantri Tirth Yatra Scheme. It is pertinent to mention that the Mukh Mantri Tirth Yatra Scheme was launched by the Punjab Government during the year 2023-24, under which around 34,000 pilgrims were facilitated to travel to various religious places by train or buses. The Punjab Tirth Yatra Samiti will work to carry out the travel arrangements under the scheme efficiently and smoothly.  

PICTC Designated as the Sole Provider of Digital Signatures for Government Departments and Organizations

The Cabinet also approved designating the Punjab Information & Communication Technology Corporation Ltd. (PICTC) as the sole provider of digital signatures for government departments and organizations. The Corporation has also been designated for the procurement of IT and ITeS services in keeping with the provisions of the Punjab Transparency in Public Procurement Act, 2019. Furthermore, the bifurcation of responsibilities between the Department of Good Governance and Information Technology (earlier known as the Department of Governance Reforms) and Punjab Infotech has been formalized. These approvals are expected to improve governance and procurement processes, foster digital transformation, and promote the effective delivery of public services.  

Gives Green Signal to Adopt Water (Prevention and Control of Pollution) Amendment Act, 2024

The Cabinet also gave the green signal to adopt the Water (Prevention and Control of Pollution) Amendment Act, 2024, enacted by the Parliament of India in pursuance of clause (1) of Article 252 of the Constitution of India, read with clause (2) thereof. The Act replaces criminal liability with financial penalties and stipulates that the contravention or non-compliance of the Act would be dealt with through the imposition of financial penalties by an Adjudicating Officer. The provisions of the Water (Prevention and Control of Pollution) Amendment Act, 2024 are progressive in nature, hence adopted by the State of Punjab, as it will decriminalize and rationalize minor offenses to enhance trust-based governance for ease of living and doing business.  

Accords Approval to Amendments in the Punjab Registration of Births and Deaths (Amendment) Rules, 2025

To streamline the work of registration of births and deaths in the state, the Cabinet also gave the green signal to several amendments in the Punjab Registration of Births and Deaths (Amendment) Rules, 2025. Pertinently, keeping in view the amendment in the Registration of Births and Deaths Act, 1969, as the Registration of Births and Deaths (Amendment) Act, 2023 by the Central Government, the State Government had prepared the Punjab Registration of Births and Deaths (Amendment) Rules, 2025, based on the Model Registration of Births and Deaths (Amendment) Rules, 2024, sent by the Central Government. This will bring uniformity in the Act and facilitate the general public in a big way.  

Okays Annual Administrative Report of Punjab State Commission for NRIs

The Cabinet also gave consent to the Annual Administrative Report, along with the audit report, of the Punjab State Commission for NRIs for the year 2022-23.  

Approves Post of OSD (Litigation)

The Cabinet also gave the nod to the creation of one temporary post of Officer on Special Duty (Litigation) in the Department of Personnel.