The Department of Excise is on course to meet its revenue target of Rs. 242 billion for 2025, with the latest official data showing that collections have reached Rs. 90.6 billion by May 26. The Department wants to collect Rs. 240 billion from liquor tax and Rs. 2 billion from beedi tax.
Between January and May, revenue collection has kept pace with the Department’s monthly targets, with only minor fluctuations. In January, the cash target was set at Rs. 17.5 billion, against which Rs. 11.88 billion was collected. The total income, accounting for export tax rebates, amounted to Rs. 13.6 billion, an achievement rate of 77.7 percent.
Collections rose in February with Rs. 18.38 billion brought in against a target of Rs. 19 billion. With rebates included the month’s income totalled Rs. 19.46 billion, achieving 102.4 percent of the target. In March, the Department collected Rs. 19.44 billion, and after rebates, recorded Rs. 21.36 billion, 87.2 percent of the target.
April proved to be a particularly strong month for the Excise Department. Against a target of Rs. 19.5 billion, Rs. 24.99 billion was collected, resulting in total income of Rs. 25.02 billion after rebates and an achievement rate of 128.3 percent. May’s provisional figures, up to May 26, showed a collection of Rs. 9.75 billion, with the total income reaching Rs. 11.2 billion (63.97 percent achievement for the month). However, by the end of May, collections improved further, with Rs. 17.12 billion in revenue and Rs. 18.56 billion in total income, surpassing the monthly target and achieving 106 percent.
Up to May 26, the Department set a cash target of Rs. 98 billion and collected Rs. 84.44 billion. Including Rs. 6.19 billion in export tax rebates, the total income stood at Rs. 90.64 billion, reflecting an overall achievement of 92.5 percent for the period. By May 30, cumulative figures indicate the Department had collected Rs. 91.81 billion in revenue, resulting in Rs. 98 billion in total income and meeting 100 percent of the year-to-date target.
Consistent performance
When compared to previous years, 2025’s revenue performance demonstrates consistent improvement and sustained effort by the Department of Excise. In 2022, the Department’s target was Rs. 185 billion, with actual collections reaching Rs. 170 billion. The 2023 target was Rs. 182 billion, with an achieved revenue of Rs. 178 billion. Last year, the Department set a target of Rs. 232 billion and collected Rs. 226 billion.
For 2025, the Rs. 242 billion target marks the highest on record, reflecting both rising expectations and increased revenue capacity. By May 26, Rs. 90 billion had been collected, compared to the targeted Rs. 98 billion for the period.
A month-on-month comparison with 2024 also shows progress. For example, in February 2025, the Department achieved 102.43 percent of its target, compared to 110.6 percent in February 2024. In April 2025, revenue achievement soared to 128.3 percent against a target, while there was a 97.9 percent achievement rate in April, 2024. The cumulative achievement for January to May 2025 stands at 100 percent, compared to 97 percent for the same period in 2024.
Breakdown by revenue sources
The main driver of excise revenue remains the liquor tax, which contributed Rs. 82.1 billion out of the total Rs. 90.6 billion collected up to May 26. Other significant contributors include the beedi tax (Rs. 403.3 million), toddy tax (Rs. 537 million), spirit tax (Rs. 229.4 million), and various licence fees (Rs. 187.4 million). Taxes on raw materials, stickers, imports, and Thendu leaves provided additional income, while export tax rebates totalling Rs. 6.19 billion were accounted for over the period.
Monthly liquor production figures also reveal a generally stable pattern, with some months recording higher volumes than last year. For example, in January 2025, there was a production of 2.7 million units (up 17.98 percent compared to January 2024), while February and March both recorded slight increases. April 2025’s production reached 3.2 million units, a 14.1 percent increase year-on-year. However, there was a decline to 1.1 million units in May 2025.
With five months completed and half the annual cash target already achieved, the Department of Excise is well-positioned to reach or even surpass its year-end goal of Rs. 242 billion. Monthly collection trends and performance against targets will remain key indicators to watch as the year progresses.
(RK)
