From ₹2,755 crore under Akali-BJP to ₹11,200 crore in 2025-26, excise reforms have rewritten Punjab’s revenue story: Harpal Singh Cheema
New Excise Policy focuses on transparency, Ease of Doing Business & crackdown on illicit liquor: Harpal Singh Cheema
Zero tolerance against smuggling; over 4,400 FIRs, 26,000 raids conducted: Harpal Singh Cheema
CHANDIGARH, 23rd February 2026:
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, Minister Harpal Singh Cheema said the state has moved decisively away from the stagnation of previous Congress and Akali-BJP 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, alongside Excise and Taxation Commissioner Jitendra Jorwal, Minister Harpal Singh Cheema presented a detailed comparative analysis of the state’s excise trajectory. He stated, “During the SAD-BJP regime in 2011-12, excise revenue stood at a modest ₹2,755 crore. Over the subsequent decade, growth remained slow and it reached only ₹6,255 crore during the Congress regime in 2021-22.”
The Excise and Taxation Minister asserted, “However, following the implementation of a more robust policy framework in 2022-23 by the Chief Minister 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 climbing to ₹10,744 crore in the 2024-25 period and meeting the current target of ₹11,200 crore for 2025-26.”
Detailing key provisions of the new Excise Policy for 2026-27, Minister Harpal Singh Cheema noted, “The Punjab Government has introduced several measures to streamline operations and support existing businesses. A primary feature includes the renewal of current retail licenses at a 6.5% increase over the 2025-26 fees. In cases where groups are not renewed, the allotment will be handled through a transparent e-tender process.”
He further stated, “The quota for Punjab Medium Liquor at 50 and 65 degrees has been increased by 3%, bringing the total to 8.79 crore Proof Litres to meet consumer demand while regulating the market. Furthermore, to combat the sale of illicit alcohol, the government will introduce 40-degree PML sub-vends specifically in areas identified as high-crime zones under the Excise Act.”
Emphasising the government’s focus on Ease of Doing Business, Minister Harpal Singh Cheema 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, “The government is also working to extend the 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 host its own Malt Manufacturing Units. He said, “This strategic initiative signals a sophisticated evolution in the state’s industrial policy, transitioning Punjab from a downstream bottling-centric economy to a high-value manufacturing hub.”
Minister Harpal Singh Cheema asserted, “By domesticating the entire production cycle, from the processing of barley to the distillation of premium malt, the state aims to eliminate its dependence on external suppliers for raw spirits. This shift not only ensures the production of superior, homegrown quality spirits within state borders but also creates a robust farm-to-factory ecosystem that adds significant value to Punjab’s agricultural output.”
He emphasised that this transition is designed to 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, Minister Harpal Singh Cheema underlined the Punjab government’s zero-tolerance policy against liquor smuggling from neighbouring states and Chandigarh. He said, “Law enforcement has been exceptionally active, resulting in 4,406 FIRs and the arrest of 4,324 individuals. Operations included 26,218 raids and the establishment of 24,832 checkpoints, leading to the confiscation of 455 vehicles and 1,76,552 bottles of liquor. Additionally, the Excise Department destroyed 3,823,576 litres of Lahan, seized 82,990 litres of Ethanol and ENA, 66,794 litres of illicit liquor, and dismantled 374 working stills, reaffirming the state’s commitment to public safety and legal integrity.”
