Why liquor ban is bad — and good
- In late 1948, the Constituent Assembly of India sat down to discuss prohibition.
- It was opposed on three grounds: prohibition was hard to enforce; even limited enforcement would overwhelm jails; revenue loss would be substantial.
Pros and Cons of Alcohol ban in a state
| Pros | Cons |
|---|---|
| * Fall in domestic violence: Reported instances fell by 37% in the state between 2016 and 2020. | * Inconspicuous drinking: public drinking sessions are replaced by clandestine encounters with low-quality, bootlegged liquor. |
| * Less crowded jails: As the ill-effects of alcohol lead to violent cases leading to jail term. | * Children roped into smuggling alcohol: from neighbouring states |
| * Reduced alcohol consumption: alcohol is still consumed but to a smaller extent. | * Demand for substitutes for alcohol: drug addiction among youth. |
| * Weakened enforcement: alcohol is still available but to a smaller extent. | |
| * Loss of revenue: Tax revenues from alcohol were 15% of total tax revenues in 2014-15, and 1% of the state’s GDP. |
What can be done to prevent tragedies from illicit liquor?
- Legalise alcohol but levy high taxes: Could keep consumption levels low, shore up revenues, refocus police attention & lower hooch-related deaths.
- Determining the optimal tax rates: seems like a better equilibrium than the current one.
Conclusion
- When the outside world is lurching from one economic crisis to another, stability at home is nonpareil. For every tragic hooch death, there are several small but significant transformations.