Big Relief for Hotel Bars in Andhra Pradesh: Licence Fees Significantly Reduced

The Government of Andhra Pradesh has announced a major decision to ease financial burdens on hotel bars. On Saturday, it issued official orders significantly reducing the licence fees and non-refundable registration charges for bars operated within star hotels across the state.

Previously, the combined annual licence fee and non-refundable registration charge for bars in these establishments amounted to ₹66.55 lakh. This has now been brought down to ₹25 lakh. The revision marks a substantial policy reversal from regulations enacted by the previous administration in 2022, which had fixed the annual licence fee at ₹5 lakh and the non-refundable registration charge at ₹50 lakh for bars in three-star and above hotels. That policy also included an annual 10 percent hike in these charges, leading to the cumulative amount reaching ₹66.55 lakh.

The Andhra Pradesh Tourism Development Corporation (APTDC) Managing Director had proposed a reduction in these fees, citing that they were significantly higher than those in other Indian states. Responding to this recommendation, the government revised the fee structure: the annual licence fee has been retained at ₹5 lakh, but the non-refundable charge has been reduced to ₹20 lakh. Additionally, the earlier provision for a 10 percent yearly increment in fees has been revoked.

The government stated that the move aims to promote the hospitality and tourism sectors by easing regulatory costs. According to the order released by Principal Secretary of the Excise Department, Mukesh Kumar Meena, the revised fee structure will come into effect from September 1.