State’s alcohol revenue dependence among highest, growth among slowest | Hyderabad News

Hyderabad: Telangana derives a larger share of its own-tax revenue from alcohol than several major states, even as growth in alcohol tax revenue has remained among the slowest, according to a Telangana government revenue brief.According to analysis by the industry sources, alcohol accounted for 31.8% of Telangana’s own-tax revenue in 2024-25, the highest among states shown in the comparison. Tamil Nadu followed at 26.9%, Uttar Pradesh at 24.7%, Andhra Pradesh at 23.8%, Kerala at 22.4% and Karnataka at 20.4%.The share was lower in Rajasthan at 18.8%, Haryana at 17.2%, Maharashtra at 11.7% and Jharkhand at 12.8%.However, Telangana recorded only 5.9% growth in alcohol tax revenue between FY22 and FY26, placing it at the bottom of the comparison. Andhra Pradesh recorded 5.1%, while Kerala registered 7.4% growth.Several other states recorded considerably faster growth. Maharashtra’s alcohol tax revenue grew 24.7% during the period, followed by Chhattisgarh at 21.5%, Odisha 20%, Rajasthan 16.1%, Uttar Pradesh 13.6%, Karnataka 12% and Tamil Nadu 11.1%.The figures point to a significant dependence on alcohol-related revenue in Telangana’s tax structure, while the relatively modest growth indicates that collections have expanded slowly compared with other states.The revenue brief notes that recent revenue growth came largely through price and mix, with volume growth at only 1.6%. It also points to structural factors such as number of outlets, brands, pricing and taxation as areas that influence alcohol revenue.