SHILLONG: The Excise Department has shown an increase of over 10 per cent in its revenue generation in comparison to the previous financial year.
Sources said that in 2017-19, the total revenue generation stood close to Rs 186 crore whereas the figures for the current financial year are closer to Rs 213 crore.
According to sources, the department had contemplated collecting taxes through an online system but the response has not been forthcoming due to connectivity issues in the state. It was informed that the department in the last two years has seen constant growth as far as its revenue generation is concerned but nothing much can be said as to whether the same pattern would follow in the future.
Sources said that excise is an inelastic sector and it would be very difficult for the government to increase the revenue in the coming years.
The government would also have to take up other types of initiatives if it wants to increase the revenue further.
It was also informed that discussions were held by the government where it was debated on whether to ask the bonded ware houses to pay on time taxes. However, the idea was not well received.
Stating that the government has also reduced the pricing of many IMFL brands to increase the revenue, it was also said that the one of the challenges for increasing the revenue is the fact that rules are very strict in Meghalaya.
First of all, a person who wants to set up an IMFL shop has to consider its distance from religious and educational institutions along with the fact that IMFL shops are not allowed to open till late night.
