Odisha generated ₹24,455 crore in excise duty revenue between 2018-19 and 2022-23, making excise duty the third-largest contributor to the state government’s tax revenue, according to a report by the Comptroller and Auditor General (CAG) of India. The figures highlight the significant role of liquor sales and excise collections in Odisha’s public finances, with annual revenue showing an overall upward trend during the five-year period.
The state’s excise duty collection stood at ₹3,925.12 crore in 2018-19 and increased to ₹4,495.42 crore in 2019-20. Revenue declined to ₹4,053.06 crore in 2020-21 before recovering strongly to ₹5,527.60 crore in 2021-22. In 2022-23, Odisha recorded its highest annual excise duty collection during the period, at ₹6,454.62 crore.
The data reflects a substantial rise in excise revenue over five years, despite the temporary decline in 2020-21. The increase in subsequent years contributed to the growing importance of excise duty in the state’s overall tax revenue.
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SGST and VAT Also Support Revenue Growth
Apart from excise duty, Odisha’s tax collections benefited from improvements in economic activity following the COVID-19 pandemic. The CAG report highlighted a significant increase in State Goods and Services Tax (SGST) revenue, supported by the revival of business activities and rising wholesale and retail prices of various commodities. Value Added Tax (VAT) collections also increased, partly due to higher sales of petrol and diesel.
Mining Remains a Major Revenue Contributor
Mining continues to be another important source of revenue for Odisha, a mineral-rich state. According to the report, mining revenue reached approximately ₹18,600.52 crore in 2022-23. Other sources of government revenue include vehicle tax, electricity duty, land revenue and various other receipts.
However, the state’s revenue performance remains influenced by external economic factors. Fluctuations in mineral prices, particularly declining international iron ore prices, have affected revenue receipts from the mining sector. Changes in financial transfers from the Central Government have also influenced Odisha’s overall revenue position.
The figures underline the importance of excise duty, mining and other tax sources in supporting Odisha’s finances, while highlighting the impact of economic conditions and commodity prices on the state’s revenue growth.
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