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Liquor will become expensive in Uttarakhand

As the year 2025 ends in Uttarakhand, a news has come for the liquor lovers, which can spoil the taste of their wallets. If you are also fond of decorating evening gatherings, then this news is very important for you. The state government has made a big and strict change in its excise policy, which is going to have a direct impact on your pocket. There is going to be a huge jump in the prices of liquor across the state from December 15. The reason is clear, the government has once again announced the decision to impose 'Value Added Tax' (VAT) on excise duty.

How heavy will 'Shaam Ki Mehfil' cost your pocket now?

The date of 15th December and the time thereafter is going to prove costly for liquor lovers in Uttarakhand. According to the new instructions issued by the Excise Department, the increase in prices of different categories of liquor ranging from Rs 10 to Rs 100 is considered certain.

Let us understand how mathematics has changed. If you are a consumer of 'Country Made' i.e. desi or normal English liquor, then you will now have to pay Rs 10 more for Pavve (Quarter). At the same time, if you are buying the entire bottle, it will be costlier by Rs 40. The biggest shock will be felt by those people who consume imported foreign liquor. There will be a direct increase of up to Rs 100 on such bottles.

Excise Commissioner Anuradha Pal has clarified that a time-line has been fixed for implementing the revised rates and this entire process will be implemented in a transparent manner by December 15.

Why did the government suddenly increase the prices?

Now the question arises that why did the government suddenly feel the need to increase the prices? Actually, this entire matter is the result of a tug of war between the Finance Department and the Excise Department. When the policy for the financial year 2025-26 was being prepared, the Excise Department had removed VAT from excise duty. The logic behind this was that VAT is not levied in the neighboring state of Uttar Pradesh, hence liquor is cheaper there and there is a fear of smuggling.

But, the state finance department did not like this argument. The Finance Department expressed strong objection to this and said that this is causing loss to the state's revenue. Due to this 'objection', the government had to change its decision and 12 percent VAT on excise duty was re-imposed. That is, the government has given priority to filling its coffers rather than stopping smuggling and competition.

fewer contracts and earnings bumper

The strategy of Uttarakhand government is now very clear, 'minimum consumption of liquor and maximum revenue'. The figures testify that the government is succeeding in this formula. While there are around 1800 liquor vends in the neighboring state of Himachal Pradesh and 28 thousand in Uttar Pradesh, the government is earning huge profits from only 647 shops in Uttarakhand.

If we look at the figures of the Excise Department, a record revenue target of Rs 5060 crore has been set in the current financial year. This is Rs 700 crore more than last year. Surprisingly, an increase in alcohol consumption has also been recorded in the state. According to the data till October 2025, compared to last year, the sale of liquor has increased by 3.2 lakh cases, which is an increase of about 5.25 percent.

Not only this, Uttarakhand is also far ahead in terms of per capita revenue. According to the department's assessment, the state is getting an average revenue of Rs 4217 per capita, which is a huge figure.

Government is worried about smuggling

Even though the government has increased the prices, its concern still remains about smuggling from neighboring states. Liquor is already expensive in Uttarakhand compared to Uttar Pradesh, Haryana and Himachal. Now after adding VAT, this difference will become deeper.

However, the government claims that due to the new excise policy, people are now preferring to buy liquor from legal shops only, due to which illegal liquor has been curbed. Also, the distilleries of Uttarakhand are no longer limited to local consumption only. According to the data till February 2025, more than 10 lakh cases of liquor have been exported from the state to other states and countries, which is becoming a new source of employment and revenue.