Kerala liquor ban: Tharoor says revenue loss must be considered

Congress leader and former Minister of State for Human Resource Development and External Affairs Shashi Tharoor said today that while the alcohol ban in Kerala is a popular decision taken by the Oommen Chandy Government, the loss of revenue must be seriously considered by the state government.

Speaking to ANI, Tharoor said, "I think it's a popular decision, and in a democracy, the government will always do what the public wants. But the truth is, despite it being a popular decision, there are some issues that have to be considered, particularly the loss of revenue for the state government and the implications of that for the state."

Tharoor stated that while the excise revenue on alcohol would fall sharply, even tourism may take a severe hit.

"With a tremendous 22 percent of the government revenue coming in through excise on alcohol, which would no longer be available, plus a severe hit to the revenue from tourism, which is another major source of the state government's budget, the question is how would Kerala be able to maintain its excellent record of social services and social development indicators?" Tharoor questioned.

The Congress-led government in Kerala had announced recently that it would make Kerala an alcohol-free state in the next ten years. The proposal was taken at a two-hour meeting at the chief minister's residence.

Speaking at a press conference recently, Chandy had declared, "The benefits from the liquor ban will be much higher than the revenue loss that the Government will incur."

Kerala has the highest per capita consumption of alcohol in the country and experts feel that the state will incur an annual loss of Rs 8000 - 9000 crore due to the ban.