Himachal to auction liquor vends online in 2026-27; Excise overhaul targets revenue boost

Facing tighter fiscal space after reduced central transfers, the Himachal Pradesh Government has unveiled a structural overhaul of its excise regime, announcing that retail liquor vends will be auctioned entirely through an online e-bidding system in 2026-27.http://Himachal Pradesh State Tax and Excise Department

The reform, led by the Himachal Pradesh State Tax and Excise Department, is aimed at strengthening the State’s own revenue base while promoting transparency and curbing cartelisation in the liquor trade.

Fully digital allotment for first time

Commissioner of State Taxes and Excise Dr. Yunus stated that, for the first time, both retail liquor vends and entry toll barriers would be allotted through a fully digital e-auction process.

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Under the revised framework, retail excise vends will be auctioned unit-wise through a dedicated online portal. Applicants will be required to register using a valid Digital Signature Certificate, and only bids submitted electronically via the official departmental website will be considered valid.

Officials said the move is designed to:

• Enhance transparency and accountability

• Eliminate monopolistic practices

• Encourage wider participation through remote bidding

• Improve ease of doing business

Revenue gains already visible

The department has reported an estimated 10 per cent increase in revenue following refinements in auction procedures and the adoption of competitive bidding. In the first year of these reforms, the State is understood to have earned approximately Rs 600 crore through open allotment of vends.

Additionally, the expansion of English and country liquor outlets in identified commercial hubs has broadened the excise base, contributing to higher collections.

Administrative rationalisation

Earlier excise models reportedly placed operational and financial pressures on state-linked agencies such as the State Forest Corporation, the Shimla Municipal Corporation and the Home Guards. The transition to open e-bidding is expected to streamline administrative processes and reduce such institutional burdens.

Policy framework and support mechanism

The detailed Excise Policy 2026-27, along with standard operating procedures and user manuals, will be placed in the public domain. Dedicated zonal helplines are also being planned to assist bidders during the transition to the online system.

The government views the excise recalibration as a critical fiscal stabilisation measure, particularly at a time when central devolution constraints have prompted states to optimise internal revenue streams.

With “liquor vends to be auctioned online this year” emerging as a key policy shift, the excise overhaul signals a broader push toward digitisation and revenue discipline in Himachal Pradesh’s financial management framework.