Rs 270 cr collected from bidding of wine shops
Nishikant Khajuria
JAMMU, Feb 25: The Jammu and Kashmir Excise Department has collected record revenue during the current financial year and also for the online auction of JKEL-2 (wine shops) for the upcoming fiscal 2024-25.
Official sources told the Excelsior that for the financial year 2023-24, the Department has so far collected Rs 2270 crores excise revenue (till February 23) and is all set to surpass the target of Rs 2400 crores as more than one month is still left for conclusion of this fiscal.
Compared to the financial year 2018-19, when revenue stood highest at Rs 2184 crores, including Rs 909.10 crores from Toll revenue, this year’s performance demonstrates a significant growth trajectory in the last three years, sources added.
Pertinent to mention that since 2020-21, Excise Department is collecting only Excise Revenue on sale of liquor. Earlier, more than 50 percent revenue collection used to be the contribution of Toll Tax that was abolished on 31st December, 2019.
During the Financial Years 2020-21, 2021-22 and 2022-23, the Excise Revenue collection was Rs 1353.81 crores, Rs 1777.37 crores and Rs 1796.05 crores, respectively.
The growth trajectory is testament to the fact that despite the substantial change brought about by the cessation of Toll Posts from January 1, 2020, the Department has exhibited remarkable adaptability and efficiency in revenue collection from Excise only.
Sources further informed that the Excise Department has also generated record breaking revenue of Rs 270 crores through bidding of JKEL-2 (wine shops) for the upcoming fiscal 2024-25 in the first auction with zero defaulters.
With 38 vends yet to be auctioned, it is anticipated that the Department will comfortably exceed Rs 300 crores in revenue through bid amounts alone, sources said.
Another significant achievement in this auctioning process was that all the declared H1 bidders deposited their respective bid amount within the timeline fixed by the department, sources added.
Pertinent to mention that before the introduction of auction system since March 2021 when all vends were renewed every year as per Excise Policy notified by the Finance Department, annual revenue from license fee of 223 wine shops was approximately Rs 7 crores only.
When contacted, Excise Commissioner Pankaj Sharma said that the overwhelming response to the auction is a testament to the Department’s proactive approach in engaging with the potential bidders. “We organized numerous pre-bidding meetings and established help desks to streamline the bidding process, ensuring a hassle-free experience for all participants,” he said and added that the effectiveness of these steps and initiatives can be gauged from the fact that at some of the locations, there were more than 60 prospective bidders.
Notably, holding the auction in February has also provided ample time for stakeholders to commence operations from the onset of the next financial year.
“Excise department always remains steadfast in its commitment to facilitating maximum revenue contribution to the Government by ushering progressive and technology based initiatives so as to strike balance between Ease of Doing business and effective enforcement activities,” said the Excise Commissioner, adding that the remarkable achievements not only underscores the resilience and dedication of the Department but also highlights the effectiveness of its revenue generation strategies.
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