The newly formed AAP government is looking at increasing its annual excise collections by 10-15 per cent in the next financial year, beginning Friday.

Buoyancy in collections

We will get licence fee for three months of 2022-23 immediately. Even then, our revenue collection today is Rs 6,230 crore, which shows buoyancy in collections. Senior excise officer

Going by the projections in revenue given by the government in the “extended” excise policy for first quarter of 2022-23, it is clear the government is looking at increasing the quota of liquor to be sold by at least 10 per cent, which in turn will lead to increase in excise revenue.

The government has been claiming from the start they are looking at maximising excise collections, which are needed to fund the two main poll promises — a monthly allowance of Rs 1,000 per woman and 300 units of free power to consumers.

Together, these two initiatives, if implemented without any filters, will cost the state exchequer Rs 30,000 crore per annum. Finance Minister Harpal Cheema has said though the state government does not plan to impose new taxes, they are looking at increasing the revenue from excise and sand mining.

The government has kept the minimum guaranteed revenue in the first quarter at Rs 1,440.96 crore, setting a target of revenue collection at Rs 1,910 crore — an increase of 32 per cent.

It is estimated the total annual revenue in the coming fiscal from liquor sales will be over Rs 8,000 crore, once the new policy is announced.


Though the government is going to come up with a new policy in June, sources say its focus will be on curbing liquor smuggling.

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