Shillong: Excise revenue is a major component of Meghalaya’s own tax resources and “directly supports development expenditure and public welfare programmes” in the state, the department of excise, registration, taxation & stamps, Government of Meghalaya, said, asserting that “revenue protection cannot be ignored”.In a statement issued on Tuesday (June 2), the department said excise governance cannot be “driven solely by expectations of high private profit margins”, adding that the govt has broader obligations including public health and safety, consumer protection, prevention of illicit liquor trade, strengthening lawful compliance, and safeguarding public revenues.“Trade in liquor is not an unrestricted commercial activity but a highly regulated sector governed under the authority of the state government in the interest of public welfare, revenue protection and lawful administration. Excise policy therefore cannot be determined solely by private commercial considerations,” the department said.The department cited audit findings to justify tighter controls. “Past audit observations have highlighted deficiencies and leakages within excise administration systems, including non-realization of duties and weaknesses in monitoring mechanisms. Strengthening oversight and accountability is therefore both an administrative and fiscal necessity,” it said.Responding to statements by certain liquor retailer associations on the Integrated Excise Management System (IEMS) and rationalisation of retailer margins, the government said the claims are “selective, incomplete and fail to present the larger public interest, fiscal realities and national regulatory context” of the reforms, adding that Meghalaya’s changes are consistent with national trends.The department said Meghalaya has “historically maintained comparatively liberal private retail participation” compared to many other states and that even after rationalisation, the proposed retail structure remains commercially viable. It said retailers continue to enjoy significant margins, with a maximum of 15.5% after revision, down from a maximum of 20%, and described Meghalaya’s retail margins as among the highest compared with other states.On IEMS, the department said, “Key objectives of the IEMS include prevention of illegal diversion and pilferage, curbing circulation of counterfeit liquor, plugging revenue leakages, strengthening enforcement capabilities, ensuring proper stock accountability, and protecting consumers and legitimate businesses.”