Shillong: The Meghalaya government has clarified its ongoing excise reforms, including the implementation of the Integrated Excise Management System (IEMS) and the proposed rationalisation of liquor retailer margins, stating that the measures are aimed at strengthening transparency, revenue protection and regulatory oversight in the sector.
In a statement issued by the Excise, Registration, Taxation and Stamps Department, the government said recent objections raised by certain liquor retailers' associations presented only a partial picture of the reforms and overlooked the larger public interest, fiscal realities and national regulatory context within which these reforms are being undertaken.
The department emphasised that the liquor trade is a highly regulated activity carried out under the authority of the state government and cannot be governed solely by commercial interests.
It noted that excise policies are designed to safeguard public welfare, ensure lawful administration and protect government revenue.
Highlighting developments across the country, the government said several states are modernising their excise administration through digital systems such as QR-code-based bottle tracking, digital inventory management, stricter compliance systems, supply-chain monitoring, structured pricing frameworks and enhanced revenue protection measures
Similar reforms are being undertaken in states such as Delhi and Karnataka, while states like Tamil Nadu operate liquor retail through government-controlled entities.
According to the department, the Integrated Excise Management System has been introduced to modernise Meghalaya's excise ecosystem by improving accountability and transparency throughout the supply chain.
The system seeks to prevent illegal diversion of liquor, curb counterfeit products, plug revenue leakages, strengthen enforcement measures and improve stock monitoring.
The government said the digitisation drive is intended to create a technology-driven and transparent regulatory framework rather than impose additional burdens on legitimate retailers.
Several online excise services and permit systems have already been introduced as part of the wider modernisation programme.
The department further underlined the importance of safeguarding excise revenue, which constitutes a significant source of the state's own tax income and supports development programmes and public welfare initiatives.
It pointed out that past audit observations had identified deficiencies and revenue leakages within the excise administration, making stronger oversight mechanisms necessary.
Addressing concerns over retailer margins, the government clarified that the proposed revision was part of a broader restructuring of the excise supply chain and pricing framework rather than a standalone measure targeting retailers.
The objective, it said, was to strike a balance between commercial sustainability, consumer affordability, revenue considerations and long-term regulatory stability.
The statement noted that Meghalaya has traditionally allowed comparatively liberal private participation in liquor retailing.
Even after the proposed revision, retailer margins in the state would remain commercially viable and comparatively higher than those in several other states.
The government cited publicly available data indicating retailer margins of around 7 per cent in West Bengal and about 10 per cent in Karnataka and Tamil Nadu.
The department also pointed out that under the current policy in Meghalaya, bonded warehouses are permitted margins of up to 8 per cent, while central bonded warehouses can earn a maximum margin of 5.5 per cent. In comparison, retailers would continue to enjoy margins of up to 15.5 per cent after the revision, down from the earlier ceiling of 20 per cent.
Reiterating its position, the government said excise administration must prioritise public health, consumer safety, prevention of illicit liquor trade, compliance with regulations and protection of public revenue. It maintained that resistance to transparency and compliance measures should not outweigh broader public interest objectives.
The state government also affirmed its respect for the observations and directions of the High Court and said the matter is being examined within the legal framework.
At the same time, the department expressed its willingness to engage with retailers, distributors and other industry stakeholders to ensure smooth implementation of the reforms.
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It reiterated the government's commitment to establishing a transparent, accountable and technology-driven excise administration that balances business interests with fiscal responsibility, consumer protection and public welfare.