TARGET AND ACHIEVEMENT REPORT OF THE EXCISE (ABKARI) DEPARTMENT GOVERNMENT OF SIKKIM

The Excise (Abk) Department is one of the single largest revenue earners to the State exchequer. The department responsible for enforcement and collection of Revenue accuruing out of the following State/Central Acts:-

So far asNarcotics Durgs & PsychotropiC Substances, Act 1985 is Concerned, it relates tp prohibition, control and regulation of the Narcotic Drugs & PsychotropiC substances within the States. While implementing the provision under the Act and Ruies made thereunder, the Department is required to act in coordination with the Sikkim Police, Narcotic Control Bureau which is an apex organization at the national level. With regards to the position of Narcotics Drugs & PSYChotropic substance, its trafficking and abuse within the state is concerned,the problems at the present is almost negligible. Howeverwith opening up Nathula Trade Route, there are chances of Trafficking of Narcotics and Psychotropic Substaance through Sikkim. We are requried to create adequate infrastructures to handle the situation The Sikkim Excise Act! 1992 and the medicinal & Toiiet reparation Act 1995 enable the Department not only to regulate the various aspects as provided under the aforesaid Acts, but also enable the Department to collect revenue by way of Excise Duty, Licence Fee, Export Pass free etc.

The achievement of the Department vis-a-vis the targets set for the last 14 years are as under: -

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The above figures of revene receipts in the department shows that there is substantial increase of revenue during the period, As compared to revenue receipt of RS.22.45 crores during the year 2002-03, the revenue during the 2004-05 was Rs. 32.48 crores which show that there is a growth of 40 percent (appx.). This has become possible on account of the policy enunciation of the State.

In view of background as indicated in the preceding paragraphs the road map of the Depatment can be only quantified In terms of revenue generation. The scope vis-a-vis problems connected thereto are described as under.

a) So far as collection of revenue under the provision of Sikkim Excise Act, 1992 is concerned, the revenue receipt is mainly by way of Excise Duty and other fees, etc on the IMfL & Beer manufactured within the State by locai Distilleries and Breweries and the Indian made Liquor inmported from other states. The initiative taken by the government during the past to create competition and to allow the market forces to act freely has paid a good dividend whereby 0f the Excise Duty during the year 2002-03 was Rs. 22.45. The revenue receipt for the 2007-08 was Rs. 37.64 crores. The department is hopeful of exceeding the target of Rs. 30.50 crores for the current flnanciai year i.e. 2008-09. The above analysis shows that the policy initiated taken by the State Government was in the right direction and has lead to the growth of revenue. However, further growth of revenue under the Sikkim Excise Act, 1992 is restricted on account of the fact that the amount of revenue is controlled by the quantity of liquor/beer consumed within the State.

Assuming that the policy of Uniform Excise Duty do not become operative and appropriate policy decision on encouragement of industrial units falling under the purview of the M & TP Act, 1955 is taken by the Government, the anticipated revenue receipt in the Department by the end of 2014-15 is RS.60.0 crores.