The excise revenue collection in Uttar Pradesh during the 2022-23 financial year is not only the highest in the state’s history, but it has also surpassed that of all other states in the country.
Compared to the previous fiscal year (2021-22) when the state registered a collection of INR 36,321 crore, the revenue during the 2022-23 financial year was 14% higher, totaling INR 41,250 crore.
According to officials, a noteworthy accomplishment in the past year was the absence of any fatalities in the state resulting from the ingestion of illicit alcohol.
An official stated that in the fiscal year 2017-18, the department initiated efforts to strengthen and enhance the flexibility of the excise policy in order to promote a more competitive market and increase revenue. During this period, Uttar Pradesh generated a revenue of INR 17,320 crore. The elimination of needless entry restrictions resulted in a rise in the number of brands of English liquor, beer, country liquor, and other alcoholic beverages, as per the official.
Benefiting from optimistic outlooks, the department accomplished the greatest compound annual growth rate in the nation over the last six years, attaining a mean annual growth of 15.5%.
Additional Chief Secretary, excise, Sanjay R Bhoosreddy said, “While revenue is one part, strong enforcement drives helped us in curbing bootlegging. The Russia-Ukraine war disrupted the supply of soda ash due to which a shortage of glass bottles persisted for three months last year. Manufacturing and supply of UP liquor (premium country liquor sold in glass bottles) came to a standstill, otherwise our revenues would have been slightly higher.”
According to the Excise Commissioner, Senthil C Pandian, the adoption of an end-to-end online system for approvals and compliance has increased transparency and enticed new firms and participants.
“Without the support from the top level in the government, bringing in reforms in the working of the department would not have been possible. All stakeholders can see the results now,” he said.
Half a decade ago, Karnataka led the country in revenue collection, accumulating INR 17,949 crore in the fiscal year 2017-18. By 2022-23, Karnataka is projected to generate INR 29,790 crore in excise duty. Meanwhile, Uttar Pradesh made a substantial leap from INR 17,320 crore to INR 41,250 crore during the same period.
