Vijayawada: The Andhra Pradesh government has decided to impose a 2 per cent tax on alcohol, as part of the new liquor policy which comes into effect from October 16.

The government said this was to fund efforts to control narcotics, drug treatment centers, and the opening and maintenance of rehabilitation and counseling centers, to ensure that “these public services receive the funds necessary for their efficient operation.

Principal Secretary Revenue (Excise) Mukesh Meena on Tuesday issued GO-MS 230 for levy of drug control and rehabilitation duty on IMFL, liquor, beer, wine and ready-made varieties drink made abroad.

The order said the government reviewed the excise policies implemented during the period 2019-2024 and prepared the way forward regarding the excise policies to be continued for the coming years.

A ministerial sub-committee has been constituted to recommend a draft new comprehensive excise policy on retail trade, liquor pricing and taxation. Accordingly, the Cabinet subcommittee submitted its recommendations and these were approved by the government. Orders have been issued to formulate the new excise policy on retail, pricing and taxation.

The Director of Prohibition and Excise has submitted proposals for levy of drug control and rehabilitation cess at the rate of 2 percent on the landed cost of IMFL, foreign liquor, beer, wine and ready-to-drink varieties, Meena said. .

No retailer margin will be allowed on the rehabilitation tax.