Telangana earned Rs26,600 cr in AlcoBev tax revenue in FY21
Telangana among the top 3 States in India in excise and VAT collection from AlcoBev products: Report
image for illustrative purpose
♦ Telangana’s 39.9% revenue came from alcohol
♦ The State has 2,217 retail liquor outlets
♦ 11,085 people are employees in alcohol sector
The apex body of premium AlcoBev (alcohol beverage), International Spirits and Wines Association of India (ISWAI) said that Telangana is amongst the top three States in the country in excise and VAT (value added tax) collection from AlcoBev products. Telangana government collected 39.9 per cent tax of the State’s tax revenue, from the alcohol sector. The State collected Rs 26,600 crore in tax, from the alcoholic beverage industry in the financial year 2021, while the tax collection stood at Rs 2.4 lakh crore, across the States of India.
The alcohol industry in Telangana employs 11,085 people. There are 2,217 retail outlets selling alcohol beverage in this State. These key highlights besides the critical aspects and contributions of the AlcoBev sector to the State of Telangana and the nation was cited in a report, “Economic Value of the Indian Alcoholic Beverage Industry,” recently released by ISWAI.
Nita Kapoor, CEO, ISWAI, said: “The AlcoBev sector contributes significantly to the economy, both in terms of, enabling growth and providing jobs in the State of Telangana. This State is amongst the top three States in the country on excise and VAT collections from AlcoBev products.”
“AlcoBev industry is the economic engine of the country and the State, and it is, thus essential that relevant stakeholders recognise the economic contribution of our sector,” Kapoor added.
Devika Rawal on behalf of ISWAI presented the report to Singireddy Niranjan Reddy, Telangana Minister for Agriculture and, Md Musharraf Ali Faruqui, Director of Excise, Telangana.
On the occasion, Suresh Menon, Secretary General, ISWAI, said: “As alcohol consumption grows, the demand for grains, molasses and grapes also grows, resulting in a direct benefit to the nation’s farmers. The installed capacity of alcoholic spirit-based projects in Telangana is around 14 crore liter, which is about 1.5 per cent of the national capacity.”
India is the fifth largest contributor to global alcohol market revenues and is expected to retain its position in the near to medium term. Indian alcoholic beverage industry’s market size was estimated at $52.4 billion (Rs 3.9 lakh crore), for CY21, which is equal to around two per cent of India’s nominal GDP for FY21 and more than 1.6 per cent of nominal GDP for FY22.
