In a move aimed at shoring up state revenues, the Telangana government has reinstated the Special Excise Cess (SEC) on Indian Made Foreign Liquor (IMFL) and Foreign Liquor (FL), making liquor costlier across the state from Saturday.
The decision comes as the cash-strapped government looks to plug a widening fiscal gap. The revised rates are expected to generate an additional ₹130–150 crore per month for the state exchequer.
Under the new pricing structure, the SEC adds ₹10 per 180 ml bottle of IMFL or FL, with proportionate increases for higher volumes. A 750 ml bottle, for example, will now cost ₹40 more. However, the cess does not apply to cheap liquor, ready-to-drink (RTD) beverages, or beer.
The Prohibition and Excise Department, along with the Telangana State Beverages Corporation Limited (TSBCL), has issued formal directives to all liquor retailers to enforce the price changes and update displayed price lists immediately.
According to government estimates, the liquor sector generated around ₹34,000 crore in revenue during the last financial year. With the SEC now reimposed, the government is targeting ₹40,000 crore in total revenue from liquor sales in the current fiscal.
Officials said the decision was part of broader efforts to improve resource mobilization without affecting essential services or raising taxes on common goods.
Retailers and customers have already begun to feel the impact, with many liquor outlets updating prices overnight. Reactions among consumers have been mixed, with some expressing frustration over the steep increase, especially in premium liquor categories.
Political analysts view the move as a pragmatic, though unpopular, step amid tight budget conditions, particularly with upcoming welfare commitments and debt servicing obligations.
The reimposition of the SEC follows similar revenue-enhancing measures adopted by other states in recent months, signaling a broader trend in post-pandemic fiscal management across India.
