A murder accused is tried in court and if found guilty is sentenced to rigorous punishment and on occasions to capital punishment. But, what if the killer is the government?
It could neither be hanged nor sentenced to life, because, government, particularly, the one with popular mandate is like an onion which once peeled leaves only emptiness behind!
More often than not a government tries to atone for its sins (policies) by paying solatium to the victims, which is rather a stopgap arrangement.
The UDF Government's latest move to empower panchayats to decide on liquor vends within their limits, in fact, is such an arrangement!
A letter to chief minister Oommen Chandy from former member NRI Cell - Reserve Bank of India (RBI) K.V. Mohan Menon who’s also an investment banker by profession points to this fact.
Menon who’s also the chairman of a liquor manufacturing company has suggested that the government should share liquor revenue with panchayats.
“While entrusting the local administrations with responsibilities they should also be given opportunity to share the revenue that emanate from liquor sales,” Menon wrote.
Countries like the US and the UK already practice the revenue sharing model and pass on the component of entertainment tax component to councils.
Menon says councils spend this money on education and rehabilitation of those addicted to the evils of alcoholism which could be replicated here too.
A portion of the total turn-over registered at a panchayat could be passed onto it which could be used for local development activities, he opined.
“This would decrease local body’s dependence on State government. If you ask me the government can impose 2 per cent entertainment tax which could be passed onto panchayats,” Menon asserted.
He feels such a measure would also help in checking the growth of illicit liquor trade. Menon who doesn’t support alcoholism, however, opines lack of transparency is taking the toll on responsible drinking.
“People tend to hoard in times of scarcity. That’s the general principle. The same works in liquor too. So, opening more liquor outlets need not be a source of worry,” he explained.
A study that he made in the context of GST reveals revenue-sharing (of all items) with local bodies could boost the country’s GDP by half to one per cent per annum.
“Once local bodies get into participatory mode it’ll trigger lots of economic activities at micro-level. But, in India, revenue sharing is even now confined between Centre and States,” he revealed.
Won’t a revenue-sharing formula result in the mushrooming of liquor outlets at panchayats which wouldn’t want to miss the financial opportunity?
Menon replies in the negative. “The power to grant licence still would be in the government hand going by Excise Act. So, that question doesn’t arise,” he said.
Panchayats in the State, no doubt, would’ve got immensely benefitted if only the erstwhile LDF government had introduced the revenue-sharing model.
For, in the last six years people in Kerala guzzled liquor worth Rs 26,341.74 crore of which a whopping Rs 18,549.76 crore went into government kitty.
It means, under a revenue-sharing regime, a total sum of about Rs 528 crore would’ve gone into the exchequers of 978 panchayats if the government had imposed 2 per cent entertainment tax.
That also explains why the government should look at the revenue-sharing model seriously. Excise Minister K. Babu, however, doesn’t see much sense in the proposal. “Liquor is already heavily priced in the State. So, another tax like entertainment would hurt consumer who may start looking for illicit liquor,” he maintained.
Menon, however, doesn’t foresee such a possibility. Once the local bodies taste economic opportunity, they would go all out against illicit liquor trying to poach in, he added.
However, going by what Babu says, it appears the Oommen Chandy government is in no hurry to pass on the revenue to local bodies even while it wants to entrust them with greater responsibilities!
Loads of money
* Countries like the US and the UK already practice the revenue sharing model and pass on the
component of entertainment tax to councils.
* In the last six years people in Kerala guzzled liquor worth Rs 26,341.74 crore of which a whopping Rs 18,549.76 crore went into government kitty.
* A total sum of about Rs 528 crore would’ve gone into the exchequers of 978 panchayats if
the government had imposed 2 per cent entertainment tax.
