The COVID-19 lockdown and restrictions caused a cumulative decline of revenue of ₹1,551.18 crore to the Excise Department in the first five months of this fiscal year, compared to the same period in 2019-20.

The department earned revenue of ₹9,131.6 crore in April, May, June, July, and August of 2019-20 against ₹7,580.42 during the same months in 2020-21, causing a dip of 16.9%. Revenue fell sharply owing to decline in the sale of Indian-made liquor (IML).

However, lifting of lockdown and easing of travel norms enabled the department to increase sale of IML in June, July and August. The department generated revenue of ₹6,193.22 crore in June, July and August this year against ₹5,776.22 crore during the same months last year, a surplus of ₹417 crore, according to official figures of the department.

The department’s revenue was zero in April on account of lockdown for a whole month. Revenue for May was ₹1,387.2 crore against ₹2,052.54 crore in May 2019. The average monthly revenue in the last five months of this year was ₹1,516.08 crore against ₹1,826.32 crore during the same months last year.

The sale of IML during the five months, up to August end, was 198.87 lakh case boxes against 250.85 lakh cases boxes – a decline of 51.98 lakh case boxes – an official said.

Fresh targets

The sale of liquor is expected to increase in the coming months as the government eased most of the restrictions imposed on bars, pubs, clubs and restaurants from Tuesday. Until now, shops were allowed only to sell takeaway.

New guidelines

According to fresh guidelines (Unlock 4.0) issued by the Excise Department, all the establishments will be allowed service of liquor, but with only 50% of their seating capacity.

Moreover, bars, pubs, clubs and restaurants have been asked to maintain social distance and take other standard precautionary measures for COVID-19 as per Unlock 4.0 guidelines. The State budget has increased revenue target from ₹20,950 crore in 2019-20 to ₹22,700 crore in 2020-21.