State tax reforms drive record revenue growth beyond Rs 26,000 crore in two years
The state Excise and Taxation Department has seen a steady rise in revenue over the past three years. Between 2023 and 2025, collections surpassed Rs 26,000 crore, driven by reforms and new policies. Key changes included digital systems, additional cess fees, and a revised auction process for liquor sales.
In 2022-23, the department’s revenue stood at Rs 2,147.04 crore from excise alone. By 2024-25, this figure climbed to Rs 2,776.41 crore, reflecting a sharp increase. Total collections for 2023-24 reached Rs 10,248.56 crore, rising further to Rs 10,880.57 crore in 2024-25.
The government introduced major reforms to boost efficiency. In 2023, an online tax portal was launched to improve transparency and streamline payments. The Excise e-Governance Project, rolled out in April 2023, allowed digital issuance of permits and online fee payments.
New revenue streams were also added. A Milk Cess of Rs 10 per liquor bottle generated Rs 144.84 crore in 2023-24 and Rs 141.92 crore the following year. Additionally, a Natural Farming Cess of Rs 24.62 crore was imposed in 2024-25 to support sustainable agriculture.
The Auction-cum-Tender system for liquor vends, introduced in 2023-24, continued into 2024-25. By September 2025, early collections for 2025-26 already reached Rs 5,536.30 crore, indicating strong ongoing growth.
The department’s revenue has grown consistently since 2022-23, supported by digital reforms and new cess fees. With collections exceeding Rs 26,000 crore over two years, the changes have strengthened tax administration. The upward trend is expected to continue as more measures take effect.
