- Low-quality brands, high taxes hit State excise revenue
- State excise revenue lesser compared to Karnataka, Telangana
Vijayawada; Though the state Excise revenue has increased by 30 per cent during the financial year 2021-22, when compared to Karnataka and Telangana, the revenue is much less. Indian-made foreign liquor and beer are the two important products sold in the state. The Excise department earned Rs 12,444 crore from April 2021 to January 2021. During the previous year the department revenue was Rs 9,530 crore.
On the other hand, Karnataka earned excise revenue of Rs 21,584 crore on sale of liquor and beer in 2020. While in Telangana the Excise collection was Rs 22,210 crore for 2019-20. While in Andhra Pradesh over 400 varieties of Indian-made foreign liquor and beers are sold. The Andhra Pradesh Beverages Corporation sells liquor through retail outlets.
The Andhra Pradesh government is earning less Excise revenue due to various reasons like smuggling of liquor from Karnataka, Telangana and Tamil Nadu. In its bid to increase the revenue, the government has slashed the prices on IMFL and beer, extended permission to retail outlets and is planning to sell a variety of brands as well as check smuggling. Vigil at all border areas has been tightened.
According to the Special Enforcement Bureau (SEB), 10.38 lakh litres of IMFL and 7,100 litres of beer was seized from May 16, 2020 to February 18, 2022. Most of the seized liquor was manufactured in other states and smuggled into Andhra Pradesh. States like Telangana are selling large quantities, and earning more revenue from VAT and other duties.
Experts in the liquor trade suggest that Andhra Pradesh should restart the sale of old brands which were very popular in the State to generate more revenue. If the sales increase in Andhra Pradesh the revenue will also go up. The wine merchants say that the old reputed brands are slowly entering the market. Since the YSRCP Government came to power some reputed brands left the state fearing total prohibition. They hope that sales will start increasing.