Jammu, Feb 15: The Finance Department of Jammu and Kashmir has officially notified the Excise Policy for the year 2025-26, introducing a significant increase in Excise Duty, license fees, and other charges to enhance revenue generation without expanding the number of liquor vends across the Union Territory. The policy, which comes into effect on April 1, 2025, reflects the government’s commitment to maintaining a balance between economic interests and social responsibility.
Under the new policy, the non-refundable registration fee for participating in the e-auction of retail liquor vends has been raised from ₹50,000 to ₹75,000, while the minimum reserve bid price has been revised and linked to the potential of each vend. The label fee for all liquor brands has also been increased from ₹50,000 to ₹75,000, except for labels under JK Special Whisky and JK Country Liquor. In a move that will impact pricing, Excise Duty on Premium, Medium, Economy, and Low-Cost brands, as well as Wine and Beer/Draught Beer, has been increased. Excise Duty on JK Special Whisky has been revised from ₹250/LPL to ₹258/LPL, while Premium and Medium whiskeys will now attract ₹290/LPL and ₹280/LPL, respectively. Wine will now be subject to an Excise Duty of ₹85/BL instead of ₹80/BL, while Beer and Draught Beer will be taxed at ₹35/BL, up from ₹30/BL.
The government has also revised the Assessment Duty for retail vends, increasing the rate from ₹64 to ₹65 per 750 ml bottle of IMFL and from ₹32 to ₹34 per bottle of JKSW. The Processing Fee for shifting, adding, or altering licensed premises for Type A, B, and C licenses has been fixed at ₹20,000, while Type-F (Bottling Plants) licenses will now require ₹25,000. Additionally, the License Fee for JKEL-1A has been increased from ₹3 lakh to ₹4 lakh, and for Type-F licenses, it has been raised from ₹9 lakh to ₹10 lakh. The Debonding Fee on spirits where the bottling fee is not applicable has been revised from ₹4/BL to ₹5/BL. The Quota Transfer Fee has been doubled from ₹1 to ₹2 per 750 ml bottle of JK Special Whisky/JK Country Liquor, while the Stock Transfer Fee has increased from ₹0.50 to ₹1 per bottle across various liquor categories.
The revised policy also standardizes the fee for serving liquor at social events, setting it at ₹7,000 per occasion, replacing the previous dual slab system of ₹5,000 and ₹10,000. Emphasizing regulatory control, the government has decided not to increase the number of liquor vends for the policy year 2025-26. Furthermore, the prohibition on the sale of liquor to individuals below 21 years of age will continue to be strictly enforced.
To curb malpractices, the policy introduces stringent penalties for overpricing by JKEL-2 licensees. Those found selling liquor above the Maximum Retail Price (MRP) will face escalating fines, starting with ₹40,000 for the first offense, ₹75,000 for the second offense, and ₹1 lakh for the third offense. A fourth violation will result in the cancellation of the retailer’s license and the forfeiture of their Earnest Money Deposit (EMD).
The Excise Department remains responsible for regulating liquor manufacturing and trade through a structured licensing system, ensuring compliance with duties, levies, and fees as defined in the annual Excise Policy. The new policy reflects the government’s focus on increasing revenue while maintaining strict control over liquor distribution, reinforcing its commitment to both fiscal growth and societal welfare.