The alcoholic beverages sector, which brings in
the most revenues after GST collection and stamp duties for almost all states in India generated Excise revenues
to the tune of Rs 1.4 lakh crores for the year 2018-19, according to a report titled “An
Integrated Value Chain Approach to Ease of Doing Business: A Case Study of
Sugar, Alcohol-Bev, and Tourism” by policy think-tank Pahle India
Foundation.
During the year,
the alco-Bev sector generated 15% additional excise revenues as compared to the last
year’s revised Budget estimates, says the report citing state
budget documents for 2018-19 as the source. The report moots overhauling the Excise Act,
as part of crucial recommendations for reforms in the alco-Bev sector for
improving ease of doing business (EoDB) and greater benefit to state economies.
Among the top
three states with highest revenue earnings from Excise in 2018-19, Uttar
Pradesh was at the top with earnings of Rs 23,000 crore, Maharashtra was second
with Excise earnings of Rs 15,343 crore and Telanga was third with
Excise earnings of Rs 10600 crore.
The alco-Bev the sector was part of the three sectors besides sugar and tourism chosen for the
study report to establish that an integrated value chain approach to ease of
doing business will lead to more quantifiable gains and better results for the
states. This report was released by Shri. Amitabh Kant, CEO of Niti Ayog, in
New Delhi recently.
Speaking at the
launch of the report, Mr. Amitabh Kant said:
“The alco-Bev sector is important because the tourism sector and other
sectors are impacted by it… This is a sector
which can create a vast number of jobs and can be a driver of travel and
tourism in many ways. But the sector is constrained by huge number regulations,
procedures and state governments putting large impediments leading to lack of
transparency.”
“The economic
importance of the alcoholic beverages sector, inferred by the contribution to
tax revenues, is immense. Since the introduction of GST, excise is one of the
major taxes that states levy and collect by themselves. Tax revenue from excise
forms a significant part of the states’ revenue receipts,” the report states.
“If you look at the alcohol sector, inputs
come from the sugarcane industry and output goes to tourism industry and all
these 3 industries have a major impact on the economy. Tourism for creating
jobs, Alcohol because 20-30% of states revenue comes from alcohol and sugar
because of its political sensitivity and fact that farmers need to improve the
incomes. So if we could have an Integrated Value Chain Approach and if all the
roadblocks in these 3 sectors were removed it would be fantastic for everybody
in the economy,” said Amrit Kiran Singh, executive chairman, International
Spirits & Wines Association of India.
Overhauling the Excise Act was part
of the key macro-economic recommendations for policy reforms, which examines these
three industries as case studies due to their interlinkages with each other and a different regulatory framework to establish how even a small reform in any of
these sectors can create a cumulative economic impact.
“The present
government has been proactive in weeding out outdated laws and practices. While
this is happening at the Central level, the states also need to adopt this. …
There is a need to review the Excise Acts in order to remove the redundancies
and update business practices,” the report recommends.
For the alco-bev the sector, the report identifies key areas that make it difficult for businesses
to operate, which pertain to Licensing, Brand Registration, Label Registration,
Excise Adhesive Labels (EALs), and
Pricing, besides the archaic Excise Act.
|
Revenue from Excise*
|
|||||||
|
(All figures are in INR crores)
|
|||||||
|
STATES
|
2013-14
|
2014-15
|
2015-16
|
2016-17
|
2017-18
|
2018-19
|
|
|
1
|
Karnataka
|
12828.32
|
13801.19
|
15332.88
|
16483.75
|
17948.51
|
18250
|
|
2
|
Maharashtra
|
10101.12
|
11397.07
|
12469.55
|
12287.91
|
12500.00
|
15343.08
|
|
3
|
Uttar
Pradesh
|
11643.8
|
13482.32
|
14083.88
|
14273.42
|
15700
|
23000
|
|
4
|
Delhi
|
3151.63
|
3422.39
|
4259.93
|
4251.4
|
4700
|
5200
|
|
5
|
Haryana
|
3697.34
|
3470.45
|
4371.08
|
4613.12
|
5500
|
6000
|
|
6
|
Telangana
|
NA
|
2807.68
|
3809.06
|
5580.71
|
8999.99
|
10600
|
|
7
|
Orissa
|
2284.91
|
2709.73
|
3388.90
|
3877.87
|
||
|
8
|
Assam
|
610.25
|
664.99
|
807.95
|
963.81
|
1060.19
|
1300
|
|
9
|
Chhattisgarh
|
2549.14
|
2892.45
|
3338.39
|
3443.50
|
3687.86
|
4355.00
|
|
10
|
Jharkhand
|
627.93
|
961.67
|
912.46
|
961.67
|
1600
|
1000
|
|
*Note: Revenue from Excise does not include revenue from Sales
Tax/VAT;
it is an additional revenue for the states where it is levied.
|
|||||||
