The Haryana government has introduced its new Excise Policy for 2025-27, which is set to increase liquor prices across the state, especially in urban centers like Gurugram and Faridabad, due to revised ex-distillery prices and increased license fees. The policy, effective from June 12, 2025, until March 31, 2027, is part of the state’s efforts to boost revenue, reduce the illegal liquor trade, and promote responsible drinking, all while balancing economic goals with social concerns.
The policy, which spans 22 months instead of the typical 12-month cycle, addresses the issue of misalignment in past excise policies that ran from June to May rather than April to March cycle. This misalignment stemmed from the temporary closure of liquor vends during the COVID-19 pandemic in 2020 for two months. The extended period aims to streamline revenue collection, budgeting, and compliance with the financial year framework, ensuring greater consistency and transparency, according to the policy document.
Key highlights of the policy include higher ex-distillery prices, particularly for country liquor, which will result in higher retail prices for consumers. For example, the ex-distillery price for country liquor (50-degree proof) in new glass bottles will rise from Rs 360 per case in 2025-26 to Rs 370 in 2026-27, with similar increments for pints and nips. The 65-degree proof "Metro Liquor" will see a sharper increase, with quarts in new glass bottles rising from Rs 410 to Rs 420 per case over the same period. These price hikes, coupled with a 12% VAT and a 5% surcharge, are expected to raise retail prices by 5-7% for country liquor, with a smaller increase for Indian Made Foreign Liquor (IMFL) across most districts.
In Gurugram and Faridabad, the price impact will be more noticeable due to higher license fees for bars and taverns. Bars in these areas will pay Rs 45 lakh annually, significantly more than the Rs 35 lakh in Panchkula and Sonepat, or the Rs 23 lakh in other districts. Tavern fees in Gurugram are set at 4% of the zone’s license fee, the highest in the state, likely driving up prices in upscale establishments. The extended bar hours (up to 2 am) in these cities will also come with hefty fees, rising from Rs 20 lakh in 2025-26 to Rs 25 lakh in 2026-27, costs that are likely to be passed on to customers, making nightlife more expensive.
The new policy also includes a cap of 2,400 retail liquor vends (L-2/L-14A) and introduces measures to promote transparency, curb cartelisation, and simplify business operations. These include e-tendering for vend allotments, mandatory point-of-sale (POS) machines for billing, and geo-tagging of vends to improve accountability. Additionally, the policy will ensure no liquor vends are located near highways, aiming to reduce the risk of accidents and curb illegal activities.
“We’ve crafted a policy that not only secures optimal revenue but also ensures a fair and transparent system for all stakeholders—government, manufacturers, licensees, and consumers,” said Excise and Taxation Commissioner Vinay Pratap Singh under whose name the policy has been released.
The Excise Policy 2025-27 is designed to maximise government revenue while addressing the challenges posed by neighboring states, with 21 of the state’s 22 districts sharing borders.
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