BanglaHunt Desk: States affected by lockdown have started selling liquor. States have taken this step because about 15% of their total income comes from taxes on alcohol. In the current situation, this is their only source of income. Meanwhile, the five southern Indian states of Andhra Pradesh, Kerala, Tamil Nadu, Telangana and Karnataka consume about half (45%) of the total alcohol consumption in the country, according to a Crisil report on Friday. Some states have raised taxes on alcohol to compensate. Delhi has levied 80% ‘Special Covid-19’ duty on the maximum retail price.
75% alcohol is found in 12 states
75% alcohol is found in 12 states. This includes five states in South India. Apart from that, Delhi, Punjab, Uttar Pradesh, West Bengal, Madhya Pradesh and Rajasthan. Tamil Nadu has the highest use rate at 13%, Karnataka at 12%, Maharashtra at 6% and Delhi at 4%. On the other hand, Maharashtra has the highest tax on alcohol as compared to other states.
Every day the loss is 69 crore rupees
In the first and second phases of the lockdown, in 40 days, the states have lost an average of about Rs 26,000 crore from alcohol. During this period, the states incurred an average of about 79 crore losses in a single day.
Revenue collection of states
According to the PRS Legal Report, the main sources of revenue for the states are SGST (43%), land revenue, VAT and sales tax (23%), excise duty (13%) and other taxes. Excise duty is responsible for a large portion of their total earnings, which is the highest in alcohol. With the exception of Gujarat and Bihar, all the states and Union Territories have a large share of income from alcohol. In Tamil Nadu, alcohol attracts VAT along with import duties on special duties, transport duties, labels and brand registration fees.
Every Indian drinks 5.8 liters of alcohol every year
According to a 2016 report by the World Health Organization, the country's per capita alcohol consumption per year (over 15 years) was 2.4 liters in 2005. In 2016, it has increased to 5.6 liters. In 2010, men drank 1 liter per year and women 1.3 weaker liters. In 2016, this number increased to 9.4 liters and 1.6 liters respectively.