Projecting excise revenue of ₹12,800 crore for 2026-27, Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Monday asserted that Punjab’s excise reforms have not only rewritten the state’s revenue trajectory but are now directly strengthening public welfare by funding schools, hospitals, and other pro-people schemes.
Announcing the new Excise Policy, the Minister said the state has moved decisively away from the stagnation of previous Indian National Congress and Shiromani Akali Dal-Bharatiya Janata Party governments, transforming excise into a transparent, enforcement-driven, and growth-oriented sector that is delivering record collections while tightening the noose around illicit trade.
Addressing a press conference at Punjab Bhawan in Chandigarh, alongside Excise and Taxation Commissioner Jitendra Jorwal, the Minister presented a detailed comparative analysis of the state’s excise trajectory. He said, “During the SAD-BJP regime in 2011–12, excise revenue stood at a modest ₹2,755 crore. Over the subsequent decade, growth remained slow, reaching only ₹6,255 crore during the Congress regime in 2021–22.”
The Minister added, “However, following the implementation of a more robust policy framework in 2022–23 by the Bhagwant Singh Mann-led Punjab Government, the state witnessed an immediate and massive leap to ₹8,428 crore. This momentum has continued unabated, with revenue rising to ₹10,744 crore in 2024–25 and meeting the current target of ₹11,200 crore for 2025–26.”
Detailing key provisions of the new Excise Policy for 2026–27, Cheema said, “The Punjab Government has introduced several measures to streamline operations and support existing businesses. A key feature is the renewal of current retail licences at a 6.5% increase over the 2025–26 fees. In cases where groups are not renewed, allotments will be made through a transparent e-tender process.”
He further stated, “The quota for Punjab Medium Liquor (PML) at 50 and 65 degrees has been increased by 3%, taking the total to 8.79 crore proof litres to meet consumer demand while ensuring market regulation. Additionally, to curb illicit alcohol sales, the government will introduce 40-degree PML sub-vends in areas identified as high-crime zones under the Excise Act.”
Emphasising Ease of Doing Business, the Minister announced, “Brand price increases of up to 4% under EDP and EBP will now be subject to an auto-approval mechanism, significantly reducing bureaucratic delays.” He added that the government is also working to extend operating and dispatch hours for units to improve logistical efficiency.
In a landmark step towards industrial self-reliance and economic diversification, the Minister announced that Punjab will now establish its own malt manufacturing units. He said, “This strategic initiative marks a significant evolution in the state’s industrial policy, transitioning Punjab from a bottling-centric economy to a high-value manufacturing hub.”
“By domesticating the entire production cycle—from barley processing to premium malt distillation—the state aims to eliminate dependence on external suppliers for raw spirits. This shift will not only ensure superior, homegrown quality spirits but also create a robust farm-to-factory ecosystem, adding significant value to Punjab’s agricultural output,” he added.
He emphasised that the move will help retain capital within the state, generate specialised technical employment, and strengthen Punjab’s position as a leader in high-end industrial distillation.
Sharing enforcement data, Cheema underlined the government’s zero-tolerance policy against liquor smuggling from neighbouring states and Chandigarh. He said, “Law enforcement has been highly active, resulting in 4,406 FIRs and the arrest of 4,324 individuals. Authorities conducted 26,218 raids and established 24,832 checkpoints, leading to the seizure of 455 vehicles and 1,76,552 bottles of liquor.”
“Additionally, the Excise Department destroyed 38,23,576 litres of lahan, seized 82,990 litres of ethanol and ENA, confiscated 66,794 litres of illicit liquor, and dismantled 374 working stills, reaffirming the government’s commitment to public safety and legal compliance.”