Punjab clears New Excise Policy; Single malt units allowed, revenue target set at Rs 12,800 crore; Watch Video
Babushahi Bureau
Chandigarh, February 23, 2026: In a major revenue push, the Punjab Cabinet led by Chief Minister Bhagwant Mann on Monday approved the new Excise Policy for 2026–27, setting an ambitious revenue target of ₹12,800 crore — more than double the ₹6,200 crore collected in 2022.
Projecting the move as a crackdown on the liquor mafia coupled with systemic reforms, the government said the revamped policy is designed to ensure transparency, steady revenue growth, and ease of doing business.
Under the new framework, existing liquor groups will be allowed renewal with a 6.5 per cent increase. Contractors who do not opt for renewal will be brought under an e-tendering process to ensure competitive allocation.
The Cabinet cleared the Excise Policy for the financial year 2026–27, setting a revenue target of ₹12,800 crore — an increase of ₹1,600 crore (12.5%) over the revised target of ₹11,200 crore for the previous financial year.
Excise revenue, which stood at around ₹6,200 crore at the beginning of the current government’s tenure, is projected to double within five years, significantly strengthening the state’s fiscal position and funding welfare schemes.
In terms of pricing and taxation, the quota for country liquor (desi sharab) has been reportedly increased by 3 per cent. While excise duty on country liquor remains unchanged, excise on English liquor and beer has been increased. Additionally, license fees have been raised by approximately 10 per cent.
In a significant policy shift aimed at boosting the state’s industrial footprint, the Cabinet has for the first time framed rules permitting the establishment of malt manufacturing (single malt) units in Punjab. These units will be allowed to undertake both distillation and bottling within the state — a move expected to attract investment and strengthen Punjab’s presence in the premium liquor segment.