Liquor prices set to increase in Puducherry

Liquor prices set to increase in Puducherry as government decides to hike excise duty, licence fee

Liquor prices are set to soar in Puducherry, with the government deciding to steeply increase the excise duty and double the license fee as part of measures to bolster own revenue for sustaining the existing welfare schemes and the pro-poor schemes introduced in the Budget for 2025-26.

At a lengthy cabinet meeting held late on Wednesday (April 23, 2025) evening, the government decided to substantially increase excise duty, additional excise duty, special excise duty, and raise licence fee by almost 100% across the Union Territory (UT).

Along with the revision of excise duty, the government has also decided to increase the Guideline Land Register value of 34%, registration charges, including those of certain categories of vehicles, to enable the government to raise additional revenue of around ₹350 crore this financial year.

“After almost nine years, the government has decided to revise the excise duty and licence fee for all categories of liquor outlets, including wholesale, retail, and tourism. It will be almost a 100% increase. The revision of excise duty, GLR and registration charges will certainly help us fetch more revenue from own resources,” a Minister told The Hindu.

According to an official, the increase in excise duty would certainly have an impact on the pricing of liquor in all the four regions of the UT. But even if the outlets decide to pass on the excise duty hike to the consumers, the official said the price of liquor would be cheaper in the four regions, compared to the neighbouring States.

As for the GLR value, the official said the minimum value of property determined by the government was raised by 5% in 2013-14 and subsequently, in 2016-17, it was reduced by 25%. Now, it has been increased again by 34%, almost rationalising it with neighbouring States. The government has also increased the registration charges, including for marriage, by around 1.5%. The temporary registration charges of certain category vehicles have also been increased, said a Cabinet source.

In the 2025-26 Budget introduced by Chief Minister N. Rangasamy, the AINRC-BJP government had decided to enhance monthly financial assistance under various welfare schemes and add more beneficiaries in new categories. The notable announcement made by the Chief Minister was to enhance monthly financial assistance to women heads of BPL families in the 21-54 range, who are not covered by other welfare schemes, from ₹1,000 to ₹2,500 from this fiscal. Currently, there are around 60,000 beneficiaries eligible to get this monthly assistance.