Revenue Mobilisation from Taxes on Alcoholic Beverages

• Start date सितम्बर., 2023
• Completion date मार्च, 2024
• Sponsor The Foreign, Commonwealth and Development Office (FCDO) of the Government of the United Kingdom support for the study of India’s fiscal issues for the Sixteenth Finance Commission under Project No. 400047
• Project leader R. Kavita Rao, Sacchidananda Mukherjee
• Consultants/Other authors Shivani Badola and Vivek Jadhav
• Focus

  State excise is the third largest source of the States’ own tax revenue (OTR), after State goods and services tax (GST) and sales tax/value-added tax  (VAT) on items that are presently not attracting GST (viz., petrol, diesel, aviation turbine fuel, or ATF, crude petroleum, natural gas, and alcoholic beverages for human consumption). The tax base of state excise is the consumption of alcoholic beverages (viz., Indian manufactured foreign liquor, or IMFL, country liquor, beer) and other narcotics (opium, Indian hemp, and other narcotic drugs and narcotics) in a State. Some States also collect sales tax on alcoholic beverages in addition to State excise. Combined revenue from the State excise and sales tax on alcoholic beverages constitutes a major share of OTR. Therefore, this study could be useful for States to understand the factors influencing State excise collection from alcoholic beverages.