Any tax on "alcohol" or "liquor" comes under the ambit of State Excise Duty Central Excise Duty was merged into GST in Jul 2017.
All collections under State Excise Duty is "income" of the state of Himachal Pradesh. Excise is the second largest income source for Himachal, next only to GST.
Excise collections averaged Rs 1,050 crores per year post the GST introduction in 2017-18. Pandemic in 2020-21 dipped the revenues by Rs 315 crores. HP has still not reached pre-pandemic level of Excise collections.
Excise Collections Data for Quarter-1 (Apr, May, and Jun) of year 2023-24 is available. It paints a grim picture. The quarterly collections this year are less by a whopping 40% (Rs 135 crores) compared of last year!
This year has been a good tourist season. There is greater economic activity in the market. Why have the collections gone down?
We do not have answer to WHY the collection has gone down. But, we definitely know WHERE the collection has gone down.
Collections in seven districts has dropped by a total of Rs 150 crores when compared with previous year!
Let us drill down further. Which collection Treasuries in Himachal have let us down?
What are Excise Officials of Nurpur, Sunder Nagar, Rohru, Indora and Baijnath doing? Collections in 2023-24 First Quarter are not even Rs 1 crore in these Treasuries.
As we see below, small places like Kalpa, Amb, and Barsar have done better than the five bad performers listed earlier. Mandi, Kullu, Hamirpur and Solan have grown.
A very unique insight. A look at Cummulative daily Excise Duty Collection from 1st Apr till 30th Jun for the post-GST six financial years indicates we were doing better than all previous years till early April 2023. Thereafter the collections were nearly flat. By Jun 2023 end, we collected better than only the pandemic start year (2020-21).
Cash is KING. The financial condition of Himachal government is very precarious. We spend more than what we earn. We pay more than what we collect! We cannot accept such shortfall in Excise Duty Collection?
Hope someone in Himachal government is working on this lapse.
Do comment!
(All data taken from HP Government websites)