In the tug-of-war between India¡¯s states and Prime Minister Narendra Modi¡¯s federal government for cash to fight the coronavirus outbreak, liquor has become the latest battleground.
A well-known teetotaler, Modi banned alcohol sales during the country¡¯s national lockdown to contain the virus, blocking a crucial source of direct tax income for states already struggling to ramp up health infrastructure and provide food to millions left jobless. The loss of liquor tax revenues ¡ª an estimated 7 billion rupees ($92 million) a day ¡ª have prompted calls from states like Punjab to lift the ban.
¡°Liquor is a major source of revenue for all states,¡± Amarinder Singh, Punjab¡¯s chief minister from the federal opposition Congress party, said in a television interview last week. ¡°How will I make up for that? Will the people in Delhi give it to me? They don¡¯t even give 1 rupee.¡±
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