LIQUOR Vs. REVENUE – After, around 40 days of countrywide lockdown in the wake of the Covid-19 pandemic, the central government has permitted states to reopen liquor shops with other non- essential shops like – mobile, stationery, electronics.
The motto behind the re-opening of liquor shops is to rejuvenate the leaden economy of the country.
The decision was taken under some restrictions and conditions. As only standalone shops were permitted to be opened and barring contaminated areas from exemption.
*Role of liquor in revenue*
Liquor has always been an important source of revenue generation for states.
As per the ‘State Finance’ report of RBI it contributes around 10-15% in a revenue gain of the majority of the states.
Since, it is a combination of many taxes (Manufacturing tax+ sale tax + Vallie Added Tax ) which makes it the most valuable source of revenue.
During 2019-2020 total revenue generated by liquor had been Rs. 1,75,501.42 Crore .
Above are the points which provide us adequate information about the role of liquor in our states’ economy.
*Repercussion of the decision*
As after getting permission whole India witnessed a large throng of public queued up Infront of liquor shop and eagerly waiting for their turn.
Breaking social distancing norms and distance less than one meter between two individuals has made it a strenuous task for government officials to be tackled with.
This gave national and international media a golden chance to discuss and debate over India’s source of revenue and it’s social distancing norms.
*Way Forward*
It is very obvious that the re-opening of liquor shops will be the easiest way to lessen the increasing distress over our economy but if it is not done in a cautious manner then it has also the capacity to break the nation physically as well as economically.
Few steps are need of the hour.
Timing should be allotted for sale according to the age group, which definitely lessens the burden of the crowd.
Identification of customers should be the prime focus ensuring not to belonging them from contaminated areas.
Digital payment will definitely be a smart step.
So, wary management by the government and heedful attitude of citizens will definitely help to curb the situation.
