Uttar Pradesh govt targeting excise revenues of Rs 58,000 crore in FY24

To shore up its finances before the Lok Sabha elections next year, the Uttar Pradesh government is targeting excise revenues of Rs 58,000 crore in 2023-24. This will be an increase of 40 per cent over the Rs 41,250 crore in 2022-23.

To achieve the stiff target, the Excise Department has drawn up a blueprint to plug leakages in tax collection and clamp down on illicit trade in liquor and smuggling.

UP Excise Minister 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 rang in excise revenues 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. He gave orders on stopping 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 200,000 raids to clamp down on illicit trade. Those led to the arrest of about 7,500 people and seizure of more than half-million litres.

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.