Friday, November 9, 2012

Stop Drinking, Save Tax!

A few years ago, me with one or two my friends went to a spiritual session by a well known Yoga Guru. During the session the Guru said "Alcohol is the major reason behind poverty". That makes sense, because I have seen many daily wagers spending most of their earning in liquor shops after a full day's work. This leads to poverty in their family.

Hearing this, one of my friends commented. "In that case, Government should make the liquor available free of cost. That way we can eradicate poverty". Another interesting aspect.

Recently I happen to see a liquor bill. I am not saying that I saw it from my friend, neither I am disclosing where I have seen it. What interested me is the liquor costs Rs 142 only.  The Government levies a sales tax of 100%. So, it becomes 284. The story is not over, an education cess of Rs 16 is also charged. So totally a drinker has to pay Rs 300. Just for the contents worth 142.

Let alone Goverment making Liquor free of cost, it is charging more than 100% of tax. And they say it is the major cause of poverty. Isn't the Government fueling poverty here?

I am really irritated when I see advertisements by Government Public Relations department, against alcohol. Why do they spend money to educate people to avoid liquor, when they can simply ban it? They say if liquor is banned, the families of the people who work in alcohol industry will be starved. Well, good argument. What happens if all the people take these advertisements in the right sense, and stop drinking? Then also the liquors workers will go jobless. So, the Goverment is sure not all people are going to stop drinking because of these advertisements. Probably they can save one or two from drinking. Does it worth? Spending so much money to save only a few people? I want the Government to stop this nonsense.

All the facts I said here apply to cigarettes and other tobacco products as well.  Even they are harmful to your family and neighbors. They are more addictive.This article in Economic Times says that the cost of smoking for 30 years is Rs 52 Lakhs (Rs 5.2 million).

We do different things to save tax. Now we know that for alcohol and tobacco, they charge 100% tax. Then why don't we stop drinking and smoking and save tax?


Image Courtesy: Wikimedia Commons

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