Excise department on a high

The Excise Department is expecting an increase in revenue by Rs 1,000 crore for the fiscal year 2011-2012,  following the hike in additional excise duty on liquor by 10 to  20 per cent with effect from April 1.

Speaking to reporters, Excise Minister M P Renukacharya said the increase in excise duty would fetch an additional revenue helping in exceeding the budgetary target.

The department has collected a revenue of Rs 8,315 crore, exceeding its previous target of Rs 7,500 crore.

 “We have a target of collecting Rs 9,300 crore for the year 2011-2012,” he added.
“We have increased the maximum retail prices between Rs 2 and Rs 25 on all 17 slabs. Despite the increase, our rates are less compared to neighbouring states,” the minister said.

Hike in renewal fees

The department is now planning to increase the annual renewal fees of the primary and bottling distilleries.

“The primary distilleries are now paying Rs 30 lakh for annual renewal, while the bottling units are paying Rs 20 lakh. As there has been no increase in renewal fees for the past five years, we are now planning to double the fees,” he said.

As the business has improved after the ban on arrack in the State, the companies might not have a problem in shelling out more for renewal, he added.

However, he said, a decision would be taken after a discussion with the chief minister.
Of the over 2,000 illicit liquor manufacturing units that operated in the State, nearly 1,000 had been destroyed and the rest would be cleared within three months, Renukacharya said.

The State would be free from illicit liquor by June, he added.

On wine shops and bars charging more than the maximum retail price on liquor, the minister said the department has filed 6,500 such cases and collected a fine of Rs 7.5 crore.

He also explained several measures taken by the department to prevent smuggling of liquor into the State from   neighbouring Goa as well as illegal transport of R S Powder (a white powder used to manufacture illicit brew) from Mehboobnagar and Rangareddy districts of Andhra Pradesh.

He said: “We have written to officers of the respective states and the department officers will visit them to discuss the issue.”