Should the liquor license fee be hiked?

Should the liquor license fee be hiked?

The Maharashtra govt. recently announced a hike of 50% in liquor license fees beginning this April. Also it is planning to levy heavy excise duty on the sale of liquor in the state. This will make it very expensive for any one to obtain the license for liquor shop in Maharashtra.

Before this, reports were coming that the Delhi Govt was planning to tax the liquor shops by 200%. Although with the resignation of the govt, the step could not be implemented. But this raises a serious question that if it is right to hike the liquor license fee or not. Let’s find out:-

In favor of the topic

1. Raising the license fee will make liquor more expensive and thus it would become out of reach for many poor people who invest all their hard earned money in purchasing the alcohol.

2. It will increase the revenue of state govt. and will come out as a progressive tax as only the rich will be able to buy alcohol.

3. Alcohol is not an essential commodity that without it one can’t survive. In fact, it is harmful for health. So, increasing any tax on alcohol is a welcome move.

4. This step will help in the eradication of fast growing liquor business in the state. Liquor shops are mushrooming in many areas even residential ones, due to being cost effective. This decision of the govt. will keep a check on the development of liquor industry.

5. As compared to the profit that is earned by the sale of liquor, the proposed hike is completely in proportion. The state govt. must collect higher revenues from profitable businesses.

6. This decision is morally justified as instead of banning liquor, if it is made expensive people will automatically consume limited amount of it. If one used to intake 3 glasses of alcohol in a day, he would certainly reduce his consumption keeping in mind the expense.

Against the topic

1. This proposal of the govt. is only aimed at earning higher revenues. It will not result in decreased consumption as addicts will still buy it no matter what the cost is.

2. It will lead to the shutting down of various small liquor shops and this will hit the liquor business very badly. Ultimately, it will affect the revenues of govt. and also affect the population of the city who prefer to drink occasionally.

3. The proposed hike will encourage the business of illegal sale of spurious liquor which will prove fatal for the consumers.

4. This step can also lead to sale of alcohol in black or black marketing of liquor.

5. This step will create more troubles for the families of alcohol addicts as they will spend more amounts in consuming alcohol.

Conclusion

The decision of the government to raise the license fee of liquor is a welcome step as it will put a restraint on the rapidly increasing number of liquor shops in the state.

It will, to some extent, also minimize the consumption of alcohol. But with this, govt. needs to bring in mechanism so that illegal spurious liquor could not be sold and liquor mafia can’t come into action.