Before the lockdown, Arman Malik, 29, would never have thought that he would be able to set aside a time to buy a bottle of his favourite alcohol from the neighbourhood liquor store in Delhi. Meanwhile, in Mumbai residents can now apply for alcohol to be delivered home. In Ranchi, alcohol delivery is now allowed through apps such as Zomato and Swiggy.
The Communist Party of India (Marxist)-led Kerala government launched an app, BevQ, to generate e-tokens for liquor purchase. A similar website was launched by the Aam Aadmi Party-led Delhi government to reduce the rush at liquor stores.
Sale of alcohol is fast becoming key for states to earn revenue and the taboo associated with alcohol in India seems to wearing off as governments go out of their way to allow home delivery of liquor. “The website has glitches but it makes buying simple. Such steps are welcome and will ease the purchase of alcohol,” Malik said.
India has been under a lockdown since 25 March, with the sale of alcohol being banned in the first two phases until 3 May. The opening of stores subsequently saw long queues, which put social distancing norms at risk. Keeping the norms in mind, state governments made changes on platforms for the sale of alcohol.
The value added tax (VAT) on alcohol is a key source of income for states. Since the introduction of the goods and services tax, VAT on alcohol remains with states.
According to political analysts, it is clear that states are looking at alcohol to harness its revenue potential, and taxes on liquor are an important source, with at least 11 states—Delhi, Assam, Meghalaya, Karnataka, Andhra Pradesh, Telangana, Uttar Pradesh, Haryana, Rajasthan, Tamil Nadu, and West Bengal—imposing special corona cess.
“The state governments have made a very spirited defence of alcohol. The reasons are very obvious. A large part of state government revenue comes from the tax they receive on the sale of alcohol. A high level of resources flows to states on consumption of alcohol. As such, governments are bending over backwards to ease the flow of liquor so that sale and consumption resume and they have greater flow of resources,” said Sandeep Shastri, a political analyst and pro vice-chancellor of Jain University, Bengaluru.
In the past, increased taxes on items such as cigarettes was expected to discourage people from buying, but on the contrary it rose, he said. “Every time there is a budget, taxes on cigarettes go up, but governments have realised that consumption will continue. They are not seeking to play a moral role, and are being prudent keeping resource positions in mind,” he added.
