Excise revenues drastically reduced

Since the introduction of the Nagaland Liquor Prohibition Act 1989, revenue earning of the Nagaland Excise Department has been reduced drastically, according to the latest annual administrative report of the state’s Excise and Prohibition Department 2013-14.

The report informed that revenue was highest in 1987-88, when the department earned Rs 584.37 Lakhs, followed by Rs 550.90 Lakhs in 1988-89. The revenue dropped significantly the following year, with the department earning only Rs 110.09 Lakhs. In the first two years, after the act was introduced, the average revenue was Rs 567.635. Since then, over the next twenty five years (till March 2014), the average revenue earnings of the department has been Rs 194.84. The year 1990-91 recorded the lowest revenue for the department at Rs 82.32 Lakhs.

The Excise Department implements the Nagaland Excise Act 1967, the Narcotic Drugs and Psychotropic Substances Act 1985, and the Nagaland Liquor Total Prohibition Act and Rules 1989. After the Nagaland government introduced the Total Prohibition Act 1989, the main function of the department underwent a change from a regulatory role to enforcement. As a result of this, excise revenue collection in the state has been drastically reduced, stated the report.

The only source of the excise revenue is from sale of liquor to defense personnel through canteen store depots, to paramilitary bonded warehouses and through fine amounts realized from excise violators.

Although there are only 264 enforcement personnel in the department, drastic improvement in detection duties has been reported during the reporting period, stated the report.