Lockdown 3.0: How much revenue have states earned from liquor sales?

In most unlikely scenario, alcohol has become talking point in India in middle of COVID-19 pandemic. This happened after Centre released new guidelines on May 1 which allowed sale of liquor across states should State Governments decide on it. This has been leing to heavy crowds and long queues in front of liquor stores in many states. 

In order to prevent overcrowding at shops, State governments of Delhi, Andhra Presh, and West Bengal increased tax on liquor: Delhi Government imposed 70% tax, Andhra Presh government imposed a 50% hike and West Bengal imposed an ditional 30% sales tax. However, states are set to gain as liquor sale is expected to bring revenues to state coffers. 

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What is liquor ecomy? 

According to a study by Fitch Group company and a research firm Indian Ratings & Research, states like Himachal Presh, Meghalaya, Sikkim, Karnataka, and Rajasthan earn more than 20% of ir state revenue from liquor sale. 

In a study by Social Justice and Empowerment Ministry in collaboration with All India Institute of Medical Sciences (AIIMS), Chhattisgarh, Tripura, Punjab, Arunachal Presh, and Goa were found to be some of highest alcohol consuming states. impact of liquor ecomy on state revenues was observed on May 4 when states earned record profits. 

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Here’s how much each state has earned in revenue from liquor sales so far: 

UTTAR PRESH:  state of Uttar Presh earned Rs.100 crore on May 4. 

KARNATAKA: state of Karnataka gets more than 20% of state revenue from liquor sales and on 4 May, state earned more than Rs 45 crore revenue on first day of lockdown 3.0 with sale of 3.9 lakh liters of beer and 8.5 lakh liters of Indian me liquor. On 5 May, sales hit a record high of Rs.197 crore. 

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MAHARASHTRA: Maharashtra government earned Rs.11 crores from liquor sales on 4 May and Rs.62 crore on 5 May. 

ANDHRA PRESH: Andhra Presh which earns 10-15% of state revenue from liquor sales earned Rs.68.70 crore on 4 May

DELHI: Delhi earns 14% of total revenue of state from alcohol and it reportedly Rs. 645 crore loss in revenue due to lockdown. 

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