Queues after
easing of restrictions, and a price hike in Delhi, are pointers to the
importance of liquor source of revenue . How much does liquor contributes to
states’ coffers, and which state earns how much ?
Following the
easing of restrictions in the third phase of the nationwide lockdown, some of
the most striking images on Monday showed long queues outside liquor stores
around the country. By the evening, the Delhi govt. announced a 70% hike in the
price of liquor across categories in the capital.
How do states earn from liquor?
Liquor contributes
a considerable amount to the exchequers
of all states and union territories except Gujarat and Bihar, both of which
have enforced prohibition. Generally , states levy exercise duty on manufacture
and sale of liquor. Some states, for example Tamil Nadu, also impose VAT (value added tax) states also
charge special fees on imported foreign liquor ; transport fee ; and label
& brand registration charges. A few states, such as Uttar Pradesh, have
imposed a “special duty on liquor” to collect funds for special purposes, such
as maintenance of stray cattle.
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