Click to play videoNew Delhi: Alcohol sales are state subjects in India and everyone looks at it as a golden goose which must be exploited to the hilt. So how will the economic side of liquor trade be affected with the Union Health Minister proposing a national policy on alcohol?
Article 47 of the Constitution states: "Government shall endeavour to bring about the prohibition of the consumption (of alcohol) except for medicinal purposes of intoxicating drinks."
But the ground reality though is quite different.
The average Indian today takes his or her first sip of alcohol at the age of 19 compared to 28 in the 1990s. And this is likely to dip further in a few more years.
Despite these disturbing facts, there are still no strict restrictions imposed on alcohol consumption. And well, the enormous contribution of liquor to state revenue seems to be the answer.
During the year 2006-2007, the combined earnings of states from alcohol were estimated at nearly Rs 30, 000 crore accounting for over 11.5 per cent of the tax revenues.
Moreover, liquor was the second largest contributor to the states' aggregate revenue kitty after sales tax (Rs 1,20,709.15 crore).
The reliance on alcohol for revenue generation is a nation-wide phenomenon.
Karnataka is the leader with excise collections of Rs 4060 crore while Uttar Pradesh brings in Rs 3650 crore. Andhra Pradesh is a close third, earning up to Rs 3250 crore and Gujarat, because of its prohibition policy, grosses just Rs 58 crore.
With these figures and nearly 62.5 million alcohol consumers of alcohol, it seems liquor will be a vice that even the government will find hard to kick.
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