The Andhra Pradesh government has introduced a major financial reprieve for hotel bars by significantly reducing their licence fees and registration charges. Announced on Saturday, the new policy lowers the combined annual charges for bars in three-star and higher hotels from ₹66.55 lakh to ₹25 lakh.
Previously, the annual licence fee was ₹5 lakh, with a steep non-refundable registration charge of ₹50 lakh. This structure, introduced by the previous government in 2022, also imposed a 10% yearly increment, driving costs up over time. The revised policy retains the ₹5 lakh annual licence fee but cuts the non-refundable charge to ₹20 lakh and eliminates the annual 10% hike.
The Andhra Pradesh Tourism Development Corporation (APTDC) had advocated for these changes, arguing the earlier charges were far higher than in other states, deterring growth in the hospitality sector. The government’s decision is expected to boost the tourism and hospitality industries by alleviating regulatory costs.
The revised fee structure, detailed by Excise Department Principal Secretary Mukesh Kumar Meena, will take effect from September 1. The policy reflects the government’s commitment to fostering a more competitive and supportive environment for the state’s hospitality businesses.
