Bhubaneswar: Odisha collected Rs 24,455 crore in excise duty over five years from 2018-19 to 2022-23, with annual collections rising significantly during the period, according to a report by the Comptroller and Auditor General (CAG) of India.

Excise duty has emerged as the third-largest contributor to the state government's tax revenue, reflecting the growing contribution of liquor sales to the state's finances.

The state collected Rs 3,925.12 crore in excise duty in 2018-19, which increased to Rs 4,495.42 crore in 2019-20. The collection stood at Rs 4,053.06 crore in 2020-21 before rising to Rs 5,527.60 crore in 2021-22 and Rs 6,454.62 crore in 2022-23.

Substantial Excise Revenue Increase

The figures indicate a substantial increase in excise revenue over the five years, despite a decline in collection in 2020-21.

Apart from excise duty, Odisha's tax revenue has also benefited from the recovery in economic activity following the COVID-19 pandemic. The report noted a significant rise in State Goods and Services Tax (SGST) collection, attributed to the revival of business activities and an increase in wholesale and retail prices of various commodities.

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The state's value-added tax (VAT) collection also increased alongside higher sales of petrol and diesel.

Mining Another Source Of Revenue

Mining remains another major source of revenue for Odisha. According to the report, mining revenue reached approximately Rs 18,600.52 crore in 2022-23. The government also earns revenue through vehicle tax, electricity duty, land revenue and other sources.

However, fluctuations in mineral prices, particularly a decline in international iron ore prices, have affected the state's revenue receipts. Changes in transfers from the Centre have also influenced the state's overall revenue position during the period under review.