Punjab’s Finance Minister, Harpal Cheema, has revealed a projected excise revenue of Rs 12,800 crore for the fiscal year 2026-27. He emphasized that the state’s excise reforms are now directly benefiting public welfare by funding essential services like schools, hospitals, and other pro-people schemes. The new excise policy aims to enhance transparency, enforcement, and growth in the sector, moving away from the stagnation seen in previous administrations.
Cheema highlighted the significant growth in excise revenue over the years, citing a notable increase from Rs 2,755 crore during the SAD-BJP regime in 2011-12 to Rs 10,744 crore in 2024-25. Under the current government led by Bhagwant Mann, the revenue target for 2025-26 was met at Rs 11,200 crore, showcasing a positive trajectory in revenue collection.
The new excise policy includes measures to streamline operations and support existing businesses in Punjab. Notable provisions involve a 6.5% increase in retail license fees for renewals over the previous year and a transparent e-tender process for unallocated groups. Additionally, the quota for Punjab medium liquor has been raised by three percent to 8.79 crore proof litres to balance consumer demand and market regulation.
To address the issue of illicit alcohol sales, the government plans to introduce 40-degree PML sub-vends in high-crime zones identified under the Excise Act. Furthermore, Punjab is set to establish its malt manufacturing units, marking a strategic shift towards becoming a high-value manufacturing hub in the industrial landscape.
