Telangana achieves highest excise collection per capita in India

Telangana has reported the highest excise collection per capita in India at Rs 4,860, surpassing Karnataka's Rs 4,432. This increase is attributed to state control over liquor distribution, marketing, and pricing, rather than just higher consumption. A study by the National Institute of Public Finance and Policy highlights that Telangana's revenue benefits from a fixed fee system, which is less dependent on actual sales. States with state-managed distribution tend to generate more excise revenue than those with private operators. Despite a decline in liquor consumption during the 2020-21 fiscal year due to the pandemic, Telangana's excise collection per capita rose to Rs 4,622 in 2021-22, up from Rs 3,821 in the previous year.