VIJAYAWADA: Contrary to the State government’s claim that it is not at all considering liquor as an income generating source, there is a sharp increase in its excise revenue. The excise revenue which stood at Rs 3,839 crore in 2014-15, rose to Rs 5,789.67 crore in 2017-18. However, officials of the Prohibition and Excise Department maintain that the increase in revenue is not an indication of rise in liquor sale in the State.
In support of their argument, the officials said that the department got `2,281.07 crore revenue only in the first five months of the current financial year (2018-19). “Actually, the excise revenue in the first five months of the current financial year is less compared to the corresponding period last fiscal. We are not sure that the total excise revenue for the current fiscal will touch the last year’s figure,” an excise official said.
Speaking to TNIE, an official said that the increase in Maximum Retail Price (MRP), levy of Additional Excise Duty (AED), in addition to the Excise Duty and Value Added Tax (VAT), had led to the increase in excise revenue in recent years. When it comes to the volume of liquor sale, it has only increased by 5 to 6 per cent, the official added.
Echoing the view of the excise officials, Andhra Pradesh State Wine Shop Dealers Association president Rayala Subba Rao said that after reducing the licence fee for dealers while allocating A4 shops, the State government cut their sale margin and imposed Additional Excise Duty.
The same was reduced to 10% now. The government is taking away the remaining margin in the name of AED. Similarly, it also enhanced the margin for liquor manufacturers, which resulted in the Excise Department getting more tax. All these factors led to the increase in excise revenue. However, the increase in sale of liquor is nominal,” he said.
The official records revealed that the liquor sale through unauthorised outlets (belt shops) is going on unabated. The excise officials had registered cases against 12,607 belt shops and arrested 12,849 persons in 2017. As many as 11,482 cases were registered till August 2018 and 11,786 persons were arrested for bootlegging. In some cases, widows and destitute women indulge in illegal sale of liquor for their livelihood, an excise official said.