Agartala: Tripura’s government is celebrating a steady 12% increase in liquor revenue over the past few years, but local liquor shop owners are less than enthusiastic about the rise.
While state officials point to growing alcohol consumption as the cause of the revenue boost, business owners argue that the hike is largely due to sharply increased license fees, not a genuine uptick in sales.
According to Keshab Sinha, the Deputy Commissioner of the State Excise Organisation, excise duty collection has surged from Rs 186.96 crore in the 2017-18 fiscal year to Rs 484.09 crore in 2024-25.
Sinha highlighted that despite the Covid-19 pandemic in 2019-20, which saw a dip in revenue, the state has seen a consistent upward trajectory in excise duty collection.
The revenue for 2022-23, 2023-24, and 2024-25 was Rs 368.11 crore, Rs 417 crore, and Rs 484.09 crore, respectively, marking a significant increase year-on-year.
“The steady rise in revenue shows an increase in alcohol consumption, and we are taking all necessary steps to enforce measures that ensure maximum revenue collection,” Sinha said, pointing to the role of the Excise Department in generating this growth.
However, liquor shop owners in the state have expressed concerns, arguing that the rise in revenue is not entirely due to a surge in consumption.
A businessman, who runs a foreign liquor shop in Agartala, explained that the significant hike in license fees was the primary factor behind the revenue increase, not higher alcohol sales.
He pointed out that the annual license fees in Tripura range from Rs 35 lakh to Rs 1 crore depending on the category, compared to much lower fees in neighbouring Assam, where fees are between Rs 1 lakh and Rs 2 lakh.
He emphasised that while alcohol consumption may have grown, it has not kept pace with the surge in revenue reported by the state’s Excise Organisation.
“The increase in revenue is a result of excessive license fees, not a natural rise in alcohol consumption,” he said.
Under the previous Left Front government, liquor license fees ranged from Rs 6 to Rs 7 lakh annually.
However, since the BJP took power in 2018, these fees have soared, leading to financial strain for many shop owners.
Subrata Saha, Secretary of the All Tripura Retail FL Shops Association, voiced concerns that the high fees were putting local businesses under significant pressure, with some vendors shutting down their outlets.
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“We’ve appealed to the government to reconsider and reduce the license fees, but we haven’t seen any substantial action,” Saha added.
He warned that if the government does not address the issue soon, the liquor trade in the state could face severe decline.
In West Tripura, which includes Agartala, there are currently 148 operational foreign liquor shops.
However, with the growing financial burden on shop owners due to license fees, many fear the future of the industry is at risk.
