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 2025 it can reach up to $1976 billion. Interestingly, India’s alcohol market is one of 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.
Uttar Pradesh topper
Different states 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. The excise revenue of the North Eastern states is much higher. This industry provides employment to about 15 lakh people. According to industry estimates, 210 million people drank alcohol in 2015. Now this number has reached above 30 crores.
According to the figures of 2020-21, about one lakh 75 thousand crore rupees were earned from excise in the whole country. Uttar Pradesh was the highest earning state from liquor. The excise revenue of UP stood at Rs 31,517 crore. This is 21.8 percent of the total revenue of the state. In this case, Karnataka is at number two with Rs 20,950 crore. The share of excise in the total revenue of the state was 20.6 per cent. Maharashtra earned Rs 17,477 crore from excise. Madhya Pradesh earned Rs 11,873 crore from the tax on liquor. Tamil Nadu is at number five in this list with an earning of Rs 7,262.30 crore. This income is legal sale of liquor.
lowest revenue
In the northeastern state of Mizoram, 58 percent of the government’s total revenue comes from excise. Similarly, excise accounts for 55 per cent of the total revenue in Puducherry. In Meghalaya, it accounts for 47 per cent and in Telangana, 31 per cent of the revenue comes from liquor. Liquor is banned in Bihar. Because of this, there is no income for the government from liquor there. Liquor is also banned in Gujarat. The share of excise in the total revenue there is only 0.20 percent. It is seven percent in Manipur, eight percent in Assam, nine percent in Goa. The ban on liquor in Bihar is causing a loss of Rs 3,500 crore annually to the state government. However, states like Uttar Pradesh and West Bengal are getting its benefits. Revenue from excise has increased for these states.
Source: navbharattimes.indiatimes.com
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