Audit Reports
Andhra Pradesh
Report of 2010 - Performance Audit on Revenue Receipt of Government of Andhra Pradesh
Overview
The Prohibition and Excise Department (the Department) plays the dual role of enforcing prohibition of arrack and procuring revenue through regulation of Indian Made Foreign Liquor (IMFL) and Toddy.Duty paid on manufacture and the license fee fetched through auction of liquor sales outlets constituted over 94 per cent of the revenue receipts of the Department. Though the recent recession had affected several sectors of the economy, liquor trade in the State was on a rise and revenue on this account became the second largest source of the tax receipts of the State. The Excise Revenues increased from Rs. 2,684.57 crore in 2005-06 to Rs. 5,848.59 crore in 2009-10.
Considering the multifarious activities of the Department and the magnitude of revenues handled, a need was felt to review the functioning of the Department with regard to adequacy of the systems and procedures that govern the entire spectrum of licensing, manufacture and sale of liquor and the monitoring mechanism in place, with a focus on levy, assessment and collection of revenue at various stages of the supply chain.