The share of excise in the total revenue of Karnataka, Uttar Pradesh, Punjab and West Bengal is more than 20 per cent. The share of tax on the sale of liquor in the total revenue of the government in the capital Delhi is 19.9 percent. In 20 large states and union territories, the share of excise duty in total revenue is higher than the national average. According to RBI data, the share of excise duty in states’ revenue in 2013-14 was 11.4 per cent, which is expected to increase to 14.1 per cent in 2022-23. In 2022-23, the share of excise duty in the GDP of the states will be about one percent, which was 0.72 percent in 2013-14.
Which state has the highest earning
According to the data, excise duty on alcohol has grown at an annual rate of 13.3 per cent, while revenue from other sources has increased by 12.1 per cent during the same period. Last year, when the Delhi government had announced the new liquor policy, it had hoped that for every Rs 5 in revenue, one rupee would come from excise duty. Excise duty was expected to reach Rs 9,500 crore in 2022-23. Excise duty has not increased only because of increase in consumption. He has imposed more tax on liquor due to which he earned record in 2020-21.
According to the National Family Health Survey, the number of people drinking alcohol in the total population of Uttar Pradesh is less, but in 2022-23, the share of excise duty in its total revenue will be 22.3 percent. Talking about the ratio of population, Arunachal Pradesh is at the forefront of drinking alcohol. But the share of excise in the total revenue of the state is only 12 per cent. Can liquor contribute more to the revenue of the states? In this regard, M. Govinda Rao, who was a member of the 14th Finance Commission, said that even if you increase the price of liquor, people will still drink. So there is scope for this.
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fast growing market
According to the industry, the global alcohol market is worth $1448.2 billion and is expected to grow at an annual rate of 10.3 percent between 2022 and 2028. By the year 2025, it can reach 1976 billion dollars. India’s alcohol market is the fastest growing in the world. Now it is worth 52.5 billion dollars. India’s alcohol market is growing at a rate of eight per cent annually. According to government data, the country’s liquor production has increased by 25 percent in the last few years. The reason for this is that the urban population in India is increasing rapidly and at the same time the income of the people is also increasing.
Different states of the country have different excise duty. States have full control over the entire supply chain of alcohol. These include production to distribution, registration and retail. This sector is open for foreign investment. States like Maharashtra and Karnataka give subsidies to local companies to make wine. Alcohol has been kept out of the purview of GST. This industry provides employment to about 15 lakh people. According to industry estimates, 210 million people consumed alcohol in 2015. Now this number has reached above 30 crores.
Source: navbharattimes.indiatimes.com
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