AP govt throws prohibition to winds; to 'sell' Rs 33,000 Cr worth liquor in 2023-24

The Jagan Reddy-led YSRCP Government, which promised total prohibition in Andhra Pradesh, has further increased its target to sell Rs 33,000 Cr worth of liquor in the 2023-24 financial year as against just Rs. 20,928 Cr in its first year in power, 2019-`20. The rulers now say the income from liquor sales will be used for giving freebies to the poor beneficiaries.

Amaravati (Andhra Pradesh): The AP government is preparing to fill the coffers at the expense of alcoholics by aiming to sell at least Rs 30,000 to Rs 33,000 crore worth of liquor in the next financial year. In the budget presented on Thursday, the government has set a target of earning Rs 18,000 crores in the financial year 2023-24 under the state excise duty alone through the sale of liquor.

Apart from state excise, the value of liquor sales also includes other taxes like VAT and special margin. Another Rs 7 thousand to Rs 8 thousand crores of income is possible. It is estimated that the income from alcohol will be Rs 25,000 to Rs 26,000 crores in one year. The government will generate as much revenue as possible by making people drink more alcohol.

Excise sources estimate that if the revenue is to be raised to this extent, at least Rs 30 thousand crores to Rs 33 thousand crores worth of liquor will be sold. Questions are arising these days. Is the promise of alcohol prohibition just a lie? Chief Minister Jagan Mohan Reddy promised many times in the capacity of the opposition leader and even after assuming power, that the liquor ban will be implemented in a phased manner.

But now it seems that the Jagan Reddy-led YSRCP government has given up on the promise of a phased liquor ban. Income from alcohol is increasing every year as also revenue targets. In the revised estimates, the government stated that the revenue from state excise tax will be Rs.16,167 crore in 2022-23. In 2023-24, the revenue from the same tax is expected to be Rs.18,000 crore. That means it has set a target of additional Rs.1,833 crores in the new financial year. Apart from this, additional revenue of Rs.7-8 thousand crores is likely to be generated through VAT and other taxes.

The state government sold liquor worth Rs.20,928 crore in 2019-20, Rs.20,189 crore in 2020-21, and Rs.25,023 crore in 2021-22. So far in 2022-23, the state government has sold liquor worth Rs.26,500 crore. It is estimated that by the end of this financial year, liquor worth Rs.28 thousand crores will be sold.

The AP State Excise Tax is the main among the various types of taxes levied on liquor. This duty alone earned the government Rs.4,644.66 crore in 2016-17. It has been estimated in the budget that Rs.18,000 crores will come in the coming financial year. It is noteworthy that there has been an increase of 3.87 times in the income received in the form of state excise through the sale of liquor in these seven years.

The government is saying that it has reduced the number of liquor shops. On the contrary, it is increasing the sales and income of liquor every year. The state government has already borrowed Rs.1000 crores through Andhra Pradesh State Beverages Corporation (APSBCL) as a guarantee of income from liquor in the next few years.

The APSBCL auctioned its bonds and raised a loan of Rs.8,300 crore at high interest. The APSBCL needs to sell more liquor to settle these debts. The state government handed over the responsibility of the implementation to APSBCL some years ago saying that the income generated on liquor will be used for the implementation of welfare schemes like 'Cheyutha', 'Amma Vodi', and 'Asara'. The law has been amended for this. It said that the income generated from the sale of liquor will be used for welfare schemes to protect the interests of SC, ST, and BC.