The Excise Department of Meghalaya has underscored that excise revenue forms a critical part of the state's own tax resources, directly supporting development expenditure and public welfare programs. In a statement issued on Tuesday, the department emphasized that revenue protection cannot be ignored, asserting that excise governance cannot be driven solely by expectations of high private profit margins.
Government's Broader Obligations
The department highlighted that the government has broader obligations including public health and safety, consumer protection, prevention of illicit liquor trade, strengthening lawful compliance, and safeguarding public revenues. It stated that trade in liquor is not an unrestricted commercial activity but a highly regulated sector governed under the authority of the state government in the interest of public welfare, revenue protection, and lawful administration. Therefore, excise policy cannot be determined solely by private commercial considerations.
Audit Findings Justify Tighter Controls
Citing past audit observations, the department noted deficiencies and leakages within excise administration systems, including non-realization of duties and weaknesses in monitoring mechanisms. Strengthening oversight and accountability is both an administrative and fiscal necessity, it added.
Response to Retailer Associations
Responding to statements by certain liquor retailer associations regarding the Integrated Excise Management System (IEMS) and rationalization of retailer margins, the government described the claims as selective, incomplete, and failing to present the larger public interest, fiscal realities, and national regulatory context of the reforms. It added that Meghalaya's changes are consistent with national trends.
The department pointed out that Meghalaya has historically maintained comparatively liberal private retail participation compared to many other states. Even after rationalization, the proposed retail structure remains commercially viable. Retailers continue to enjoy significant margins, with a maximum of 15.5% after revision, down from a maximum of 20%. Meghalaya's retail margins are among the highest compared with other states.
Objectives of IEMS
On the Integrated Excise Management System, the department stated that its key objectives include prevention of illegal diversion and pilferage, curbing circulation of counterfeit liquor, plugging revenue leakages, strengthening enforcement capabilities, ensuring proper stock accountability, and protecting consumers and legitimate businesses.
About the Author: Manosh Das is based in Meghalaya and reports on local issues including security, politics, and social developments, providing detailed coverage of events in the Northeast region, especially Meghalaya. His work reflects ground-level realities and concerns of the state's diverse communities.
