Punjabis have a reason to keep up their spirits. A day after Centre’s decision against allowing liquor sale in the State, Chief Minister Capt Amarinder Singh has resolved to once again discuss the issue of “prohibition” with the Prime Minister Modi on Monday for enabling the people of the State to raise a toast in the days of low feeling.
Unhappy with the Centre’s denial, Capt Amarinder on Friday said that he would again raise the issue with the Prime Minister during the scheduled video conferencing on Monday.
At the same time, he questioned the connection between the spread of the novel coronavirus and the sale of liquor — which the state has been demanding to generate revenue amidst fiscal crunch.
“I will again raise the issue of reopening alcohol business to generate revenue during Monday’s video conference with the Prime Minister,” said the Chief Minister during a webinar with nearly 100 industrialists and senior executives, foreign envoys and others on Friday.
Pointing out that Punjab was a small state, he asked how the Centre expected it to cope with the current crisis without GST (Goods and Services Tax) and without liquor sales.
Punjab had made a formal request after the Union Ministry of Home Affairs, in its consolidated revised guidelines on April 15 for the second phase of lockdown that runs till May 3, categorically stated that no liquor shop will be permitted to open anywhere in the country. Only a day before, Punjab’s plea to resume sale of liquor in the state amidst the lockdown was rejected by the Union Ministry.
The guidelines stated, there will be a strict “ban” on sale of liquor, gutka and tobacco during the lockdown, and no permission was either given to bars to remain open during the lockdown period.
After the guidelines, two northeastern states — Assam and Meghalaya — which had earlier allowed sale of liquor in the first phase of lockdown from March 25 to April 14, also ordered them to shut down starting April 15.
Questioning the logic behind closing liquor shops, Capt Amarinder said: “What’s the connection between coronavirus and liquor sale? Coronavirus spreads through mucus. You have allowed vegetables to be sold in the open. But, what’s the logic behind banning the sale of liquor in sealed bottles? This is affecting state revenue.”
Capt Amarinder pointed that Punjab has incurred revenue losses of Rs 6,200 crore because of the ban on liquor sales during the lockdown period, while Centre is also not ready to assist us and releasing state’s pending GST arrears.
Punjab’s GST compensation of approximately Rs 4,400 crore for the last four months – from December 2019 to March 2020 – was pending for disbursement by the Union Government.
On the other hand, the state’s committed expenditure — including debt servicing, pensions, salaries, relief measures for Covid-19, healthcare and infrastructure — is budgeted at
Rs 7,301 crore for April 2020.
As Capt Amarinder would raise the issue with the Prime Minister during the video conference meeting, he is expected to be joined by the Chief Ministers of other states too including Delhi and Kerala. Even Haryana too is keen to start the liquor business.
Liquor sales are a significant source of revenue for Punjab, which is currently facing a severe financial situation without the Centre’s assistance.
In fact, instances of liquor smuggling are being reported from different parts of the state. Only a day before, an illegal liquor distillation plant in Khanna was busted, with the arrest of five men and seizure of 1,857 cartons of illicit liquor along with machines, vehicles, and Rs 5.8 lakh cash.
Several states are keen the Centre allows sale of liquor. BJP-ruled Assam and Meghalaya had ordered opening of distilleries and liquor sales to resume when a three-week lockdown was about to end on April 14 but was extended till May 3.