40% hike in licence fee to serve liquor at restaurants

There will be few takers for liquor licence, with the state hiking the fee to serve liquor at a restaurant by almost 40%. The hike in excise policy for 2025-26 is expected to impact the night life of Gurugram, which has the highest number of restaurants and pubs serving liquor.

The Pub Association owners claim that they are already seeing a dip in patrons due to ‘bring your own booze’ (BYOB) outlets. And now, with a hike in licence fee, they will have to hike liquor charges, which will drive away customers, they said.

Restaurant owners say the cost of L4/L5 (restaurant) licence has increased from Rs 18 lakh to Rs 25 lakh, and they are being asked to pay Rs 45 lakh for a 21-month term. There is an additional Rs 20 lakh annual fee to operate between midnight and 2 am, and restaurants must now pay 20% of Rs 45 lakh (about Rs 9 lakh) if they wish to add extra counters or bars.

Restaurateurs warned that though the new policy intended to bring about parity and structure, it could adversely affect the hospitality sector. Several bar owners have demanded phased implementation, or a more flexible assessment model.

“The steep rise, coupled with increased procurement and compliance costs, will push up the prices of alcohol. Not many of us can afford it. People are already choosing BYOBs, and now with this hike, they will stop coming here. A majority of us are thinking of not going in for a licence this year. The government should have hiked it in a phased manner," said a restaurant owner.

Meanwhile, Excise Department officials have defended the hike, saying it aimed to boost state revenues, crack down on illegal operators, and ensure transparency. “It’s a uniform policy meant to encourage responsible business practices,” said a senior official.

Rahul Singh, a trustee of the National Restaurant Association of India, said, “These changes impose a heavy financial burden on thousands of establishments and could discourage regulated, responsible drinking. Restaurants, bars, and lounges contribute significantly to employment, tourism, and state revenue. We urge the government to hold a dialogue with industry to develop a sustainable policy.”

Haryana Tribune