Liquor shops in India – Celebrated Glory or Shameful Dishonor?

Due to the nationwide lock-down from March 25, all the economic activities are shut down except for the essential services. Since liquor doesn’t come under essential needs liquor shops have also been closed. Though the pandemic situation is still in persistence, the government has allowed the shops to sell liquor. From then there are so many controversies and debates happening for and against the liquor ban. And the people are also agitating against the opening of liquor shops. So, here we will discuss, whether the country really needs a liquor ban or not, along with other associated aspects.

Rights come first

Though opening liquor shops during this severe pandemic situation is totally irrational and highly condemnable, I differ in the idea of a complete ban on liquor. The state cannot interfere or coerce its ideologies to the citizens. It is the right of people to choose their food or drink. People who don’t eat beef would raise voice to ban cow slaughter and who don’t drink would shout for liquor ban. Hold on people, if you don’t like something that doesn’t mean you can protest against that. Every individual can have their own choice and that should be at least respected by the government.

The other aspect is the monopolisation of liquor shops by the government. The monopoly not only restricts private companies to sell liquor but also restricts people from manufacturing liquor for their self-consumption. The law shows the absolutism, doesn’t it seems like plundering the rights from the citizens? If making idly or roti or any other food items at home for self-consumption is not an offence, why food items made with alcohol like rum cake, vodka chocolates are offence? Why can’t alcohol be considered as a normal drink? Do we pay ₹20 inclusive of excise duty and VAT for an idly that hardly worth ₹5 if cooked at home? Then why for alcohol, people are paying a higher tax rate? Though people cannot manufacture all sorts of liquor, they can make beer (easily brewed with barley) or wine, So that they can consume their alcohol comparatively with fewer prices. Why aren’t they allowed to do this? Why people are plundered in the name of tax?

The poor thing is, people (being conservatives) themselves are carried away by the despotism of the government. “For e.g., Assam government announced citizens who have more than 2 children will not get government jobs and other perks given by the government.” I saw a high positive response around my circle for this initiative. That’s where people failed to realise their rights are getting infringed. Isn’t that India, a democratic country? If so, instead of taking such a tyrannical initiative, the Assam government should have incentivised their citizens by announcing that people who have less than 2 children will get more perks from the government. This sounds more rational and that’s what a democratic state or country would do for its citizens.

So here the point is, the government should be more rational. Instead of imposing derogatory measures (like inflicting higher tax for alcohol and banning liquor production), can make awareness campaign or such other measures to protect and keep their people out from evil.

Revenue?

The other aspect of the liquor ban issue is that the government has allowed liquor shops to sell alcohol for revenue generation. A government depending only on the tax revenue is itself oppressive; if it relies on the tax revenue from the liquor sale, isn’t that a shame. The biggest revenue source to Kerala government is from the tax levied on alcohol, even then their liquor shops remain closed. Then why not the other states?

Tamil Nadu is one of the south Indian states which get comparatively less revenue share from the central government’s relief fund. Is that because the TN gov’t is making high tax revenue through TASMAC (state-run Liquor Company). Have you ever heard a public company making more profit and governed efficiently like a corporate? The answer is TASMAC which alone contributes about ₹30,000 crores to the state exchequer in a year. So, government companies can be profitable and governed efficiently, it is the government that fails to do it in Public Sector Units (PSU). 

The LPG (Liberalisation, Privatisation and Globalisation) revolution in India, made the government forget other ways of generating revenue than relying on tax returns. Instead of plundering people by imposing more tax rate on alcohol, the government can think of other ways to make a profit by improvising PSUs, the soft power of India, tourism etc. (I will discuss this more in Economy – a discussion series) 

Our country and state choose to spend all its reserves (empties RBI reserves), sell all its PSUs, assets and made the only way of revenue income from tax returns. This is being the condition, and a situation like epidemic hits, the country runs out of savings and starts to plunder people instead of protecting them. Is this a way for a state to function? When Madras High Court ordered the TN gov’t to close the TASMAC shops on May 8, since there is no safety to the consumers, the gov’t went for an appeal saying court cannot interfere in Gov.’s policy decisions. So they are not in a place to worry about the safety of the citizens. Telangana Governor Dr Thamizhisai Soundarajan asks common people to give funds to the gov’t to compensate the revenue loss to keep the liquor shops shut. Is this a legal lobbying? Isn’t it a shame? 

For a country like India gov’t should always have enough reserves to deal with a hard situation. It is high time for the government to reconstruct its revenue-generating model, have to initiate developmental measures rather than making lethargic decisions like opening liquor shops, taking money from EPF (Employee’s Provident Fund) whereby extending the retirement age of employees or unlatching railway service when the pandemic situation is in prevalence.

So the team Nistaar suggests the government take effective rational measures to handle the situation in lieu of imposing irrational ideologies over its citizens. Any comments or suggestions or fair criticism are welcome. Thank you!