Jubilee Post News & Views
- Lockdown 3: Sale of liquor to start today
- Opening of liquor shops was in demand
- Excise duty on liquor is a big revenue
News Desk
When lockdown was announced in March the maximum memes and jokes were made on how would days be spent without liquor. Videos of addicts was spreading fast on whats app and even when it has been announced that shops would not open again a flood of such memes on celebrations for opening of shops has started.
Demands to open these shops were high on social media. The messages now shared are that those in habit of drinking can bring back the strong economy by their individual contribution.
For the past few days social media is flooded with messages that states run their economy on liquor. So lets get to work and know how far these messages are true and how states depend upon income from its sale.
The lockdown 3 has started and with this the states have started liquor business. This was a long pressing demand from the industry. Even states like Haryana were demanding the same. The Rajasthan government had increased excise during lockdown only. As if the government there was certain about liquor shops opening during the lockdown 3.
States have few prime revenue sources such as the GST, land revenue, petrol and diesel taxes, excise upon liquor and taxes on vehicles.
The tax upon liquor is a big earning for states and this is why the items like liquor and petrol/diesel have been kept out of the ambit of GSt so that states can put up tax as much as they can.
Rajasthan government has increased excise upon liquor by 10% and in the state now has 45% duty instead of 35% duty upon whisky made in the country. The duty on beer has been increased and is 45%. Hence for a Rs 100 beer the customer pays Rs 45 to the government.
Also the states earn big from GST that is given to then from the centre but since for past several months the centre has not given the states their share of GST the governments have registered protest.
States also get major revenue from sale of petrol and diesel. The lockdown period saw a slump of sale of these items hence the revenue went down considerably. The situation was such that the state shad to borrow on an additional interest rate of 1.5% to 2%.
How much liquor pays the state
Majority states get about 15 to 30 percent of their revenue from liquor. Uttar Pradesh gets about 20% of its revenue from sale of liquor. Also the Uttarakhand gets similar revenue. If all states are considered than in the last fiscal they earned a whopping 2.5 lakh crore, revenue.
IN the fiscal 2019-20 Maharastra got Rs 24000 crore from liquor sale and UP got Rs 26000 crore. Telangana got Rs 21500 crore, Karnataka got Rs 20,948, West Bengal Rs 11,874 crore, rajasthan, Rs 7800 crore and Punjab Rs 5600 crore as revenue. Delhi government got Rs 5500 crore.
This is total revenue’s 14 percent. Bihar and Gujarat have prohibition.
