MP Govt approves excise arrangement for 2008-09

Bhopal, Jan 7 (UNI) The Madhya Pradesh Government today approved excise arrangement for the year 2008-09.

The decision was taken at a cabinet meeting chaired by Chief Minister Shivraj Singh Chouhan here today.

According to the approved system for 2008-09, renewal of licences of wine shops would be approved after disposal of applications for renewal by the District Committee as per directives issued and deadline set by the Excise Commissioner. Disposal of rest of the shops would be done through tenders, an official release said here today.

No new wine shop would be opened during 2008. For Ahata licence, the present system is proposed to be continued. During 2008-09, the duty on foreign liquor (wine) would be set at Rs 250 per proof litre like the present year, an official release said here today.

However, there would be zero duty on the liquor distilled from grapes produced by farmers of Madhya Pradesh. For the coming year, 180 vehicles would be hired for enforcement work in view of added requirements.

Besides, Rs 10 crore budget would be made available for computerisation of Excise Department.

Basic changes made by the state government in the excise policy have led to increase in revenue. During 2002-03, the state government had earned a revenue to the tune of Rs 916.33 crore which has increased in four years by 70 per cent to Rs 1557.77 crore.

Due to change in policy in 2004-05, several wine shops were conducted by the department. During 2007-08, 2,677 country liquor and 705 foreign liquor shops were disposed of for Rs 1,367.17 crore.

During 2007-08, a record 18 per cent increase was registered in the disposal of country or foreign liquor shops as compared to the last year. Shops of bhang, bhang ghota and poppy straws were disposed of through tenders like previous years and seven times more revenue was generated through the auction of poppy straws as compared to 2004-05.

During the year 2006-07, Rs 1,536.31 crore income was received from excise, which was 106 percent of the target of Rs 1,450 crore.

The estimated revenue from excise for the year 2007-08 would be Rs 1,800 crore. Thus, 66 per cent increase in revenue during the last four years would be registered which is a record, the release added.

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