Chandigarh's excise department is poised to surpass its revenue target for the financial year 2026-27 by approximately Rs 9 crore, according to official projections. The estimated revenue is expected to reach Rs 1,109 crore against the set target of Rs 1,100 crore, marking a notable achievement for the union territory.
Key Drivers of Revenue Growth
The anticipated surplus is attributed to several factors, including stricter enforcement of excise laws, improved compliance from vendors, and strategic policy adjustments. The excise department has implemented measures to curb tax evasion and streamline the licensing process, which have contributed to higher collections.
Policy Changes and Compliance
Recent revisions in the excise policy, such as increased fees for certain licenses and enhanced monitoring of liquor sales, have played a crucial role. Additionally, the introduction of an online payment system has reduced delays and improved transparency, encouraging timely payments.
Impact of Economic Recovery
The post-pandemic economic recovery has also boosted consumption, leading to higher sales of alcoholic beverages. The hospitality sector's revival, particularly restaurants and bars, has further fueled demand.
Comparative Performance
In the current fiscal year (2025-26), Chandigarh's excise revenue is projected to be around Rs 1,060 crore, slightly below the target. However, the next year's projection indicates a growth of nearly 4.6%, reflecting sustained momentum.
Challenges and Future Outlook
Despite the positive outlook, challenges remain, including potential policy changes at the central level and competition from neighboring states with lower taxes. The excise department plans to continue its focus on digitalization and enforcement to maintain growth.
The excise revenue is a significant source of income for Chandigarh's administration, funding various public welfare programs and infrastructure projects. Officials expressed confidence in achieving the target and are exploring additional measures to further boost collections.
