Despite a nearly 8.5% decline in sale of Indian Made Liquor (IML) this year, the growth in the excise revenue collection has turned positive for the first time this financial year.
While the IML sale has remained at 417 lakh carton boxes as of December 31, 2020, it was 455.24 lakh carton boxes in the corresponding period of 2019. Incidentally, 600.92 lakh carton boxes had been sold in the financial year 2019-20.
At the end of third quarter in 2020-21, the excise duty collection has been at ₹16,405 crore as against ₹16,218 crore in the corresponding period of 2019-20. In terms of absolute numbers, the excise duty collections, which remained slow due to the lockdown and other restrictions, for the first time surpassed the 2019 figures.
The revenue collection has increased despite the sales going down since the State government brought in a steep increase in the excise duty slabs in the middle of COVID-19 crisis to augment the State’s resources. The additional duty is expected to mop up about ₹2,500 crore to the government this year. This was besides the hike proposed in 2020-21 budget.
The Excise Department data shows that the growth in sale of IML this financial year has been slow over the last financial year even as the excise collections have been consistently higher since June 2020. The growth in IML sales have been consistent only since September, and December saw the highest month on month growth of 12%. A total of 61.24 lakh carton boxes of IML were sold in December 2020 as against 54.38 lakh in December 2019.
Meanwhile, December also saw a record excise duty collection of ₹2,436.34, the highest monthly collection so far this financial year. When the liquor outlets were allowed to open post the lockdown, ₹2,404.76 crore was collected in June.
