Why is the tax on alcohol important for the states? Know, what is its economics

On the very first day of Lockdown 3.0, implemented to deal with Corona, long queues were seen at liquor shops in all parts of the country. During this time, the government was criticized for allowing the sale of liquor when the social distancing took off. In India, liquor ban has always been a means of wooing the public on behalf of governments. States like Bihar and Gujarat have also implemented this decision. However, there is a side that revenue from liquor is a major contributor to the exchequer. Perhaps this is the reason when the talk of relaxation in the lockdown was the first thing in terms of relief in liquor sales. Let us know, which state earns from the sale of alcohol…

UP has the highest earnings: Talking about the financial year 2018-19, Uttar Pradesh had the highest earning in the country through the sale of alcohol. The UP government had earned Rs 25,100 crore from liquor cell. The second was Karnataka State, which earned Rs 19,750 crore through it. At the same time, Maharashtra had earned Rs 15,343.08 crore. The state of West Bengal earned Rs 10,554.36 crore from liquor cell and Telangana at number 5, which earned Rs 10,313 crore.

Tamil Nadu was at the top in 2016: Alcohol has always been an important source of income for states like Tamil Nadu, Haryana, Maharashtra. Now talking about the figures of 2016, Tamil Nadu had the highest income of Rs 29,672 crore through the tax on alcohol. Haryana was the second largest state with revenue of Rs 19,703 crore from the sale of liquor. Maharashtra, which is said to be the richest state in the country, had an annual income of Rs 18,000 crore from the sale of liquor.

These states also earned big money: Karnataka was the only state in South India at number four, which received revenue of Rs 15,332 crore through alcohol. At the same time, Uttar Pradesh had earned more than Rs 14,000 crore through the sale of alcohol. After UP, Andhra Pradesh received Rs 12,739 crore, Telangana got Rs 12,144 crore, Madhya Pradesh got Rs 7,926 crore, Rajasthan got Rs 5,585 crore. Punjab had earned Rs 5,000 crore from the liquor cell.

Why taxes from alcohol are important for the states: Actually, earning from liquor is also important for the states because the central government also has a share in other taxes. But in the state excise on alcohol, they have the right to be alone. Property tax, sale of stamp duty, etc. are other means through which state governments generate revenue, but liquor revenue is the most important.