Karnataka Government’s promotion of cheap liquor leads to loss to state exchequer
Loss of revenue is also coupled with health hazards to the population of the state
Inconsistencies in Excise Pricing Policy in the state has led to mass consumption of low-end liquor through favourable price and denial of access of popular brands due to high taxes leading to creation of a huge price barrier.
Situation is so that one Mr. Reddy (name changed) while coming back home from New Delhi, reached the Indira Gandhi International Airport four hours prior to his time of check-in. Walking at a brisk pace, he reached the liquor shop of the airport and stood in the long queue and came out satisfied and happy, with just two bottles of quality whiskey.
Reason, when asked, he said was very simple. Reddy says that the brand of whiskey he purchased from IGI Airport, was very cheap in terms of pricing as compared to the cosmopolitan city of Bangalore. And Mr. Reddy is not the only one, all frequent flyers to New Delhi are in the same habit of buying whiskey from Delhi Airport.
Is the state of Karnataka not losing in terms of revenue from Excise Duty and taking a huge beating in terms of money coming into the state exchequer due to its inconsistent excise policy! And here the most surprising fact remains that Karnataka happens to be the one of the largest IMFL market of the country. Bangalore, being one of the biggest cosmopolitan city of India, has a huge appetite for high-end liquor brands but the killing excise duty on premium brands makes the state exchequer poorer by the day.
Strangely, Karnataka sells one of the highest bottled alcohol in south of India but lags behind revenue as compare to other states. As a matter of fact, the newly-formed state of Telangana at half the alcohol consumed, contributes higher revenue in terms of excise as compared to this state. Moreover, liquor sale at low end is very high than any other major market in the country, thereby contributing less per case revenue. Popular and premium IMFL brands, which have high sale potential in the state, is much restricted because of the highest taxation on them in the country and there is visible consumer inaccessibility owing largely to disproportionately high MRPs.
Promotion of cheap liquor leads to heavy and binge drinking amongst the lower class causing many health hazards to the people consuming it. All progressive states of the country are these days discouraging sale of cheap liquor in their respective states owing to severe health hazards to the working and labour class in their cities.
It is right and ripe time for Karnataka government and its able Chief Minister B.S. Bommai and his Excise Minister K Gopalaiah, who perhaps have not noticed this fact so far, to give a serious thought in regards to public health and well being to stop promotion of cheap liquor in this progressive state. Taking steps in this regard and some rework on the existing Excise Policy of Karnataka will not only safeguard the health of the common man but also the state exchequer.
