Kerala has been on the path to prohibition during the last five years
Picture used for representational purpose.
Thiruvananthapuram: If official figures are to be believed, the state has been on the path to prohibition during the last five years. The share of revenue from liquor (excise and sales tax) to the state’s total revenue has been dwindling over the years. From 25.2 percent (Rs 5474.58 crore of Rs 21721.69 crore) in 2010-11 it has fallen to 22 percent (7819.45 crore of Rs 35542.96 crore) in 2013-14.
The loss as result of the latest policy will not make a huge difference either. Finance minister K M Mani said that the state would lose Rs 1811 crore as a consequence of the latest liquor policy. This will translate to just 4.2 percent of the state’s revenue of Rs 42467.49 crore for 2014-15 fiscal.
In fact, the last fiscal had seen negative growth in excise revenue growth, a first for the state. “In a way, at least theoretically, the falling revenues show that the state is inching towards zero alcohol consumption. It also lends some credence to the government’s stand that it had been doing all it can to reduce alcohol consumption,” said economist Jose Sebastian. However, it is the gradual decline in sales tax from liquor that is more pertinent
“When A K Antony introduced prohibition in 1996, there was a massive surge in the excise revenues of Tamil Nadu and Karnataka,” said Dr Mary George, the member of Kerala Public Expenditure Review Committee. She said that nearly half the money the government doles out as welfare pensions, at least in the case of men, goes into the consumption of liquor. "If liquor outlets are shut, the money will be better utilized,” she said.
Mr Sebastian, too, banks on this shift in priorities. “The surplus funds in the hands of the common man as a result of prohibition will be spend on other consumer goods which in turn could boost tax revenues,” he said.
( Source : dc correspondent )
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