Following tangible results from the enforcement drive against illicit liquor and liquor smuggling from neighbouring states, the Uttar Pradesh government, ahead of the Lok Sabha elections, has set a target of Rs 58,000-crore excise revenue during the current fiscal 2023-24. This target is a 40 per cent increase over the Rs 41,250 crore realised in 2022-23.
To achieve the ambitious target, the Excise department has drawn up a blueprint to plug leakages in tax collection and intensify the drive against illicit trade in liquor and its smuggling. UP’s Minister of State for Excise Nitin Agarwal has directed officials to ensure that the periodic revenue targets were achieved through constant vigilance, inspection and audit.
In the first three months (April-June) of 2023-24, the state clocked excise revenue of Rs 3,622 crore, which was more than 15 per cent higher than the Rs 3,146 crore during the corresponding first quarter of 2022-23.
The minister asked the officials of the department to step up vigil to check liquor smuggling from neighbouring states as well as the production of illicit liquor/hooch in UP.
“While the Ayodhya, Meerut and Devipatan divisions have topped the excise revenue table, officials in the three laggard divisions of Kanpur, Jhansi and Basti should pull up their socks to show positive results or prepare to face action,” Agarwal said.
Meanwhile, state Excise department sleuths, in recent months, conducted more than two lakh raids to clamp down on illicit trade. These raids led to the arrest of about 7,500 people and seizure of more than half million litres of liquor.
Apart from excise revenues from the liquor trade, the state government is looking at increasing its tax kitty from ethanol production. UP is India’s leading ethanol manufacturer.
Ethanol, a sugar byproduct, is used in a variety of industrial processes, including medicines, chemicals and liquor, apart from blending with fossil fuels. An increase in ethanol production for blending with fuels helps the state’s sugarcane farmers in getting timely and remunerative prices. It also helps the Central government to reduce its petroleum import. The state is looking at attracting investment in the ethanol sector to boost farm income and generate employment.