Shimla – The State Taxes and Excise Department has recorded substantial growth in revenue collections over the past three financial years, generating more than ₹26,000 crore through GST, Excise, VAT, PGT and other taxes. A spokesperson of the department said that the increase reflects stronger compliance and the successful implementation of reforms introduced by the state government.
According to official figures, the department collected ₹10,248.56 crore in 2023-24, which rose to ₹10,880.57 crore in 2024-25. In the current financial year 2025-26, collections have already reached ₹5,536.30 crore up to September 2025, continuing the upward trend.
Liquor Auction System Leads Revenue Increase
A major policy shift that contributed to this growth was the adoption of the Auction-cum-Tender system for allotting liquor vends in 2023-24 and 2024-25. This brought greater transparency to the excise process and ensured competitive participation. As a result, excise revenue increased from ₹2,147.04 crore in 2022-23 to ₹2,631.30 crore in 2023-24 and further to ₹2,776.41 crore in 2024-25.
Cess Introduced for Social and Agricultural Support
To generate additional resources and support welfare schemes, the government introduced several new cess in recent years. A Milk Cess of ₹10 per liquor bottle brought in ₹144.84 crore in 2023-24 and ₹141.92 crore in 2024-25, which is being used to assist livestock farmers and boost milk production.
From 2024-25, the state also imposed a Natural Farming Cess, contributing ₹24.62 crore to promote chemical-free agricultural practices. In 2025-26, a WDA Cess of ₹1.50 per bulk litre was levied on the export of Indian and foreign liquor to support children of widowed or destitute women and disabled parents.
Push Toward Digital Governance
To modernise departmental functioning, the Excise e-Governance Project was launched in April 2023. It enables online issuance of passes and permits, digital fee payment and improved system transparency. In January 2024, the department underwent administrative restructuring, separating GST and Excise wings for better specialisation and enforcement.
Further improving taxpayer convenience, the state introduced a new online application and mobile app in September 2024, offering e-registration, online tax payment, e-return filing for VAT and CST, online verification of statutory forms, e-declarations at check-posts, and updated departmental information.
