Alcoholic beverages – need for a win-win strategy for all stakeholders

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We have initiated a new study on alcoholic beverages sector. the objective is to see how the excise revenue can be increased without harming the producers’ interest as well as minimising the ill health impact for the consumers. The primary sponsor is the government of one of the large states in India. keeping in mind that alcobev still attracts excise revenue and not under GST, every state government looks for increasing revenue from this sector. However, arbitrarily decided excise rates often hampers revenue collection since it impacts consumption adversely. One of the major phenomenon is that the consumption shifts towards lower grade products due to price impact. This leads to lesser revenue for the government and also unwanted from the health perspective of the consumers. And, of course the industry is also impacted adversely because of these. The current study will help the government to overcome these issues. It will be done with the help of econometric analysis which can provide more robust and scientific direction to solve this problem.

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