Poll Tax

Maharashtra government increased excise on Indian Made Foreign Liquor (IMFL), or what everyone who does not go for country liquor, drinks. While alcohol consumers are used to prices going up, the quantum of the increase— 50 per cent—was still a shock. Country liquor was marginally better off with a 14 per cent hike. For those who like their rum and whisky, it might translate to paying more than 60 per cent what they did so far. If they have anyone to blame besides themselves, it is state elections of the previous year.

Just like this hike, the freebies offered then were his­toric in scale. A scheme called ‘Majhi Ladki Bahin Yojana’ offered ₹1,500 to women aged 21 to 65. After the elections, it was found a large number of ineligible women had been claiming it and there have been reports of de­lay in payments. That one scheme dug a hole of ₹36,000 crore in the state’s budget, which is now floundering under its weight. The government cannot shelve it either. It would mean reneging on its election promise. Voters have a long memory and would just punish them in the next election.

States are only left with a few products and services to tax on their own. Liquor, fortunately, comes under this ambit and is the only one a state can safely hike taxes on without citizens getting agitated

Combine that with the implementation of GST, which means taxes cannot be raised by the state wherever it wants. It is now done by consensus at the Centre, gathered by it and apportioned. States are only left with a few products and services to tax on their own. Liquor, fortunately, comes under this ambit and is the only one a state can safely hike taxes on without citizens getting agitated. Those who drink don’t matter when it comes to electoral dividends.

From its present hike on liquor, Maharashtra will get an additional ₹14,000 crore. Unfortunately, it won’t be enough because when the next election comes, something as grand as the ‘Ladki Bahin’ will again be put forth by every major political party. Bottles of rum and whisky will once again have to come to the rescue after the elections get over.

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