Tax revenues from liquor sales has become biggest revenue generator for many states.Though heavy taxation on liquor is justified in the name of moderating consumption, it has in-fact increased illegal liquor production and consumption.
The distortion created by heavy taxation on alcohol is severe on the lives of the poor. As genuine liquor products are priced out, poor approach illegal liquor shops. This has become a lucrative option for bootleggers who produce liquor using harmful chemicals like methanol. The net effect is that the health of poor is severely affected. Though only cases of death are highlighted by the media, long term harmful effects like loss of vision, cancers and economic drain is much more debilitating on the poor.
Continuing the colonial policies, govt has increased the availability of liquor shops to generate more revenue. Unfortunately due to such policies, we have belt shops in all panchayats but primary health care centres virtually non-existent. Bootlegging activities are also common in areas where prohibition is under enforce. Unlawful nexus between the local police officials and politicians are fueled the expansion of both legal and illegal liquor shops.
Revenue gains in the short term by the states through this strategy has disastrous consequences on the individual's health as well as economic progress of the nation due to non-communicable diseases and diversion of income. A serious introspection need at national level. In the short term we have to reduce taxation but also decrease the availability. Production of illicit liquor has to be stopped through strict norms for both producers as well as colluders.
The distortion created by heavy taxation on alcohol is severe on the lives of the poor. As genuine liquor products are priced out, poor approach illegal liquor shops. This has become a lucrative option for bootleggers who produce liquor using harmful chemicals like methanol. The net effect is that the health of poor is severely affected. Though only cases of death are highlighted by the media, long term harmful effects like loss of vision, cancers and economic drain is much more debilitating on the poor.
Continuing the colonial policies, govt has increased the availability of liquor shops to generate more revenue. Unfortunately due to such policies, we have belt shops in all panchayats but primary health care centres virtually non-existent. Bootlegging activities are also common in areas where prohibition is under enforce. Unlawful nexus between the local police officials and politicians are fueled the expansion of both legal and illegal liquor shops.
Revenue gains in the short term by the states through this strategy has disastrous consequences on the individual's health as well as economic progress of the nation due to non-communicable diseases and diversion of income. A serious introspection need at national level. In the short term we have to reduce taxation but also decrease the availability. Production of illicit liquor has to be stopped through strict norms for both producers as well as colluders.