GOVERNMENT OF ANDHRA PRADESH ABSTRACT Prohibition and Excise — Excise Policy for 2024-26 (i.e., from 12.10.2024 to 30.09.2026) for disposal of Shops - Orders ~ Issued REVENUE (EXCISE) DEPARTMENT G.O.MS.No. 211 Dated: 30- Read the following: )-2024 1. G.O.MS No. 466 Revenue (Excise) Department dated 29.09.2023 2. Govt. Memo No,REVO1-CPEOMISC/227/2024-Excise, dated 30.09.2024. 3. AP Ordinance No.6 of 2024 dated 30.09.2024 4, G.O.MS No. 210 Revenue (Excise) Department dated 30.09.2024. 5. From Director, Prohibition and Excise, C.R.No.2906/2024/CPE/E3, Dated:30.09.2024 @e@o ORDER: The Government have reviewed the Excise policies implemented during 2019-24 and prepared the Way Forward regarding the excise policies to be pursued for the ensuing Excise years. Pursuant to the Way Forward, a Cabinet Sub Committee has been constituted for recommending Draft New Comprehensive Excise Policy on Retail Trade, Pricing of Liquor and Taxation. 2. The Cabinet Sub-Committee has conducted an in-depth evaluation of the current Excise Policy of the State with reference to the various excise policies followed previously. This review also includes several insights from study teams led by Deputy Commissioners, who conducted field visits to Telangana, Karnataka, Tamil Nadu, Kerala, Rajasthan and Uttar Pradesh, as well as extensive feedback from key stakeholders. Further, the Committee assessed the performance of the existing policy with respect to public health impact and other critical metrics including revenue generation efficiency. 3. After thorough deliberations and detailed analysis, the Cabinet Sub-Committee has submitted its report setting out the recommendations on the Draft Excise Policy 2024 including privatisation of retailing of liquor, the number of Shops, reservations of Shops for Geetha Kulalu, method of disposal, Retail Excise Tax structure etc. The Government have approved the recommendations of the Cabinet sub-committee on the Draft Excise Policy 2024 and decided to formulate the new Excise policy for 2024-26 accordingly. 4. In the reference 2” read above, the Government have extended the current Excise policy issued in the reference 1* read above till 11-10-2024. 5. By virtue of the reference 3” read above, the sale of IMFL & FL by Shop shall be regulated by the rules made by the Government in that behalf. Further the Government have issued rules in the reference 4% read above for regulating the sale of IMFL & FL by Shop in the State. 6. In the reference 5 read above, the Director, Prohibition and Excise has submitted a comprehensive proposal regarding the new Excise policy for disposal of Shops to be implemented for 2024-26. 7. The Government, after careful examination of the proposal submitted by the Director, Prohibition and Excise, Andhra Pradesh, hereby formulate the Excise Policy for 2024-26 in respect of Shops.8. Accordingly, the following notification will be published in an Extra-Ordinary issue of the Andhra Pradesh Gazette dated 30.09.2024:- NOTIFICATION PROHIBITIO! ISE P\ FOR DISP‘ \L AND ALLOTMENT OF Si THE PERIOD 2024-26 1. Method of Retailing: The privilege of selling of IMFL and FL by Shop shall be granted to Private person(s)/entity(es) by inviting applications from public for participating in the selection process. 2. Period of License: The period of license for selling IMFL and FL by Shop shall be from 12.10.2024 to 30.09.2026 3. Number of Shops: The total number of Shops fixed for the licensing period 2024-26 is 3,736, of which 3,396 Shops shall be in the open category, while 340 Shops shall be reserved for allocation to the Geetha Kulalu. This number excludes the number of Shops under Premium Stores Category. The guidelines issued in this notification govern disposal of the 3,396 Shops under open category. A separate notification and guidelines shall be issued for disposal of the 340 Shops: earmarked for Geetha Kulalu and Premium Stores. 4. Shops for Geetha Kulalu: To promote equity, social justice and empower “Geetha Kulalu,” 10% over the existing number of Shops (Total: 340 Shops) shall be reserved for Geetha Kulalu, 5. Application Process: 5.1 Interested applicants or their authorized representatives may file applications online or offline in the prescribed application form to participate in the selection process for grant of Shop Licences. 5.2 The procedure for online and offline methods of application shall be set out in the District Gazette notification inviting applications for disposal of Shops. 6. Number of Applications: An applicant may file more than one application for one Shop and also applicant can file applications for more than one Shop. Each application shall be accompanied by the prescribed Non-Refundable Application Fee. 7. Non-Refundable Application Fee: The Non-Refundable Application Fee for each application for each Shop shall be Rs. 2 lakhs (Two lakhs only), 8. Selection Process: The selection process for grant of the privilege of Shop shall be by Draw! of Lots. An applicant can participate in the selection process for more than one Shop and there shall be no restriction on the number of Shop licenses a person can hold. 9. Retail Excise Tax (‘RET’): 9.1 Retail Excise Tax for different population slabs for the license period 2024-25 shall be as follows:Retail Excise Tax (RET) Slabs Population of Mandal/Nagar Si. No | Panchayat/ Municipality/ Retail Excise Tax (in Rs, Lakhs per annum for 2024 - Muni al corporation (as per 2011 census) 207°) 1 Up to 10,000 peer: 2__| Above 10,000 up to 50,000 55 3 ‘Above 50,000 up to a 65 4 | ___ Above 5 Lakhs 85 9.2. The Annual Retail Excise Tax shall be increased by 10% for 2025-26. 9.3. RET for Shops within SKM periphery from the borders of Municipal Corporations shall be the same as that of RET of Shops within the Municipal Corporation. 9.4. RET for Shops within 2KM periphery from the borders of Municipality shall be the same as that of RET of Shops within the Municipality, or that of the Mandal/ Nagar Panchayat, whichever is higher. 9.5. RET for reserved category Shops shall be notified separately. 9.6. In case of any dispute regarding the slab rate of RET in any area, the decision of the Commissioner / Director, Prohibition and Excise, shall be final. 10. Instalments: The RET per annum shall be paid in 6 equal advance instalments as applicable for each year during the license period 2024-26 11. Security Deposit: The licensee shall submit Bank Guarantee equal to one (1) instalment of RET of 2024-25 within 30 days from the date of selection. 12. Location of Shop: The selected applicant shall be permitted to locate the Shop ‘anywhere in the notified unit, viz Municipal Corporation, Municipality, Nagar Panchayat or Mandal. 13. Busini hops: ‘The business hours of Shops shall be from 10.00 A.M. to 10.00 P.M. 14, Margin: The Retailer Margin shall be 20% on issue price across all categories of IMFL and FL, including Beer, Wine, RTDs, etc. 15. Premium Stores: 15.1 In order to provide an enhanced and high-end retail experience within the State of Andhra Pradesh, a total of 12 Premium Store Licenses shall be granted as a separate category. 15.2 A separate notification, along with detailed guidelines, shall be issued governing the allotment, operation, and regulation of these 12 Premium Stores. 15.3 These Premium Stores shall be strategically located across major Municipal Corporation cities namely Vijayawada, Visakhapatnam, Rajamahendravaram, Kakinada, Guntur, Nellore, Kurnool, Kadapa, Anantapur or any other city as notified by the Government from time to time. 15.4 The licences for Premium Stores shall be allotted for a tenure of five (5) years, subject to the payment of Retail Excise Tax of INR 1 Crore per annum, with a stipulated increase of 10% per annum. 15.5 Each Premium Store shall have a minimum area of 4,000 square feet.16. Model Stores: 16.1 With a view to modernizing liquor retailing, the Shop licensees operating in units other than the Municipal Corporations and cities where Premium Stores are established, shall be permitted to upgrade their Shops into Model Stores on payment of a Retail Excise Tax of INR 5.00 lakhs additionally per annum for each Model Store. 16.2 Model Stores shall be permitted to stock and sell all liquor related accessories like ice buckets, ice tongs, wine corks screws, trays, glasses, goblets, etc. from the licensed premises. 16.3 Further the Competent Authority is required to convey the decision on approval/rejection of the application for upgradation to Model Store within 15 working days of application, otherwise it shall be deemed to have been approved. 17.Hon’ble Supreme Court Guidelines: While establishing Shops, the guidelines issued by the Hon’ble Supreme Court regarding establishment of such Shops on National/State Highways shall be strictly adhered to. 18. Restrictions on establishment of Shops in Tirupathi: No Shop shall be permitted on the road from Tirupathi Railway Station to Alipiri via RTC Bus Stand, Leelamahal circle, Nandi circle, Vishnu Nivasam, Srinivasam. Likewise, no Shop shall be permitted on the road from Leelamahal - Nandicircle - Alipiri - SVRR Hospital - SVIMS in Tirupathi Municipal Corporation area. 19.Monitoring Systems: 19.1 All Shops in the State shall be equipped with required systems and equipment as prescribed by the Commissioner / Director, Prohibition and Excise with full automation to update day to day transactions from time to time 19.2 All Shops shall install (02) CCTV Cameras in counters and inside the licensed premises as prescribed, with connecting facility to Command Control Center of Prohibition & Excise Department. 19.3 Transportation of IMFL and FL stocks from the APSBCL wholesale Depots to the Shops by Shop licensees shall be carried by GPS tracking enabled vehicles only. wareness Campaii -addiction and Rehabilitation: 20.1 Intensive campaigns shall be taken up to create awareness among public on the ill effects of consumption of alcohol and use of Narcotic drugs and Psychotropic substances. 20.2 Steps shall be taken to initiate the establishment of De-addiction Centers in consultation with the Medical, Health and Family Welfare Department. 21.Undisposed Shops: 21,1 In case any Retail liquor Shop remains undisposed after the completion of the allotment process, the Commissioner /Director, Prohibition and Excise may permit Andhra Pradesh State Beverages Corporation Limited or any other Government ‘owned Corporation to establish retail Shops or re-notify such Retail liquor Shop. 21.2 The Commissioner / Director, Prohibition and Excise is permitted to relocate undisposed Shops anywhere in the State as he deems fit. 22.Schedule: The schedule for the entire process starting from issuance of notification and all other activities up to the start of operation of Shops shall be specified by the Commissioner / Director, Prohibition and Excise. 23.General Provisions: The entire process of applications, allotment, establishment, licensing, and functioning of Shops shall be governed by 23.1 The Andhra Pradesh Excise (Grant of License of Selling by Shop and Conditions of License) Rules, 202423.2 The Andhra Pradesh Excise Act, 1968 and rules made there under 23.3 The Andhra Pradesh Intoxicating liquors (Prohibition of Advertisements) Act, 1978. 23.4 The Andhra Pradesh (Regulation of Trade in IMFL, FL) Act, 1993 and rules made there under 23.5 Any other circulars/instructions issued by competent authorities from time to time. 9. The Commissioner / Director, Prohibition and Excise and the Managing Director, APSBCL shall take necessary action accordingly. (BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH) MUKESH KUMAR MEENA PRINCIPAL SECRETARY TO GOVERNMENT To The Commissioner of Printing and Stationery and Stores Purchase, AP, Vijayawada (He is requested to furnish 100 copies to Govt. and 500 copies to the Director, Excise & Prohibition, AP, Vijayawada and 50 copies to the Commissioner, I&PR, Vijayawada) The Director, Prohibition & Excise, A.P. Vijayawada. The Managing Director, AP State Beverages Corporation Limited, Vijayawada. Copy to: The Law Department. The Accountant General, Andhra Pradesh, Vijayawada The Commissioner, I&PR, AP, Vijayawada. The P.S. to Pri. Secy. to Hon'ble CM. The PS to Chief Secretary to Government. The PS to Hon’ble Minister for Prohibition and Excise. The PS to Pri, Secy. To Govt., Revenue (Excise) Department. // FORWARDED :: BY ORDER// Ruplan ly SECTION OFFICER