Karnataka’s excise revenue grows by 15% as liquor, beer sales surge amid COVID-19 pandemic

The Karnataka Excise Department achieved a 15 per cent increase in revenue collection of Rs 19,306.44 crore in revenue between April and December last year, compared to Rs 16,786.78 crore in 2020-21.  

The rise in sale of liquor in the last week of 2021 led to an increase in collection of excise duty by 15 per cent between April and December 2021-22, compared with the corresponding period in 2020-21, despite the second consecutive pandemic year.

The Karnataka Excise Department achieved a 15 per cent increase in revenue collection of Rs 19,306.44 crore in revenue between April and December last year, compared to Rs 16,786.78 crore in 2020-21.

According to excise department data, the retailers sold 41.72 million carton boxes of liquor in the previous April-December period, while they sold 15.6 million carton boxes of beer in the same period last year. The numbers increased by 2.8 million boxes this year.

However, there is a dip in liquor sales in November and December 2021. Data showed that liquor sales declined by about 200,000 carton boxes while beer sales declined by about 100,000 carton boxes in November and December, 2021 compared with the same period last year.

The official sales figures as on December 31, 2021, show a 16.17 per cent growth in sale of Indian Made Liquor, and 18.01 per cent growth in the sale of beer in 2021-22, when compared to the previous year. But officials toned down the increase in sales and revenue, stating that any comparison with 2020-21 would be unfair because of the lockdown between March 23 and May 7, 2020, with nil sales and subsequent staggered reopening of CL2 (retail liquor stores) and CL9 (bars and restaurants) outlets the same year. The State Excise Department is taking several initiatives to boost production at distilleries and breweries, said an official source.

The government had fixed an annual financial target of Rs 24,580 crore for the 2021-22. The revenue collection between April and December 2021-22 is Rs 19,306.44 crore showing an achievement of 78.55 per cent of the annual budget estimates this fiscal, as compared to 73.95 per cent in the last fiscal.