By Our Reporter
SHILLONG, June 2: The Meghalaya government has defended its ongoing excise reforms, including the implementation of the Integrated Excise Management System (IEMS) and the rationalisation of liquor retailer margins, stating the measures are essential to ensure transparency and protect state revenue.
In a statement issued by the Excise, Registration, Taxation and Stamps Department, the government dismissed recent claims by liquor retailer associations as “selective and incomplete.” It noted that the liquor trade is a highly regulated sector governed for public welfare and fiscal stability, and policies cannot be driven solely by private commercial interests.
The department stated that the IEMS was introduced to modernise the state’s excise ecosystem through QR-based tracking and digital inventory systems. These measures aim to prevent illegal diversion, curb counterfeit liquor, and plug revenue leakages. The government pointed out that states like Delhi and Karnataka are pursuing similar reforms, while Tamil Nadu operates its retail entirely through a state-run system.
Addressing the reduction in retailer margins, the government clarified that the revision is part of a broader restructuring to balance sustainability with consumer affordability. It maintained that even after the rationalisation, Meghalaya’s retailer margins remain among the highest in the country. Under the new framework, retailers will retain profit margins of up to 15.5 per cent, down from the previous 20 per cent. By comparison, retail margins stand at 7 per cent in West Bengal and approximately 10 per cent in Karnataka and Tamil Nadu. The department added that bonded warehouses in Meghalaya are capped at an 8 per cent margin, while central bonded warehouses are limited to 5.5 per cent.
Highlighting that excise revenue supports developmental expenditure and public welfare programmes, the government cited past audit reports that identified significant revenue leakages under the old system.
The state government further affirmed its respect for the directions of the High Court and confirmed the matter is being examined within the legal framework. However, the Excise Department remains open to constructive dialogue with distributors and industry representatives to ensure sector stability.
