Sunday, January 10, 2021

Bihar Government Planning to Increase Taxes and Stamp Duty To Fund Revenue Shortage Due to CM's Pet Project: Prohibition Law

 

As per today's newspaper, Bihar government is planning to increase taxes, registry fee and stamp duty of property buying in order to fund the revenue shortage. On the other hand, the state government keeps spending on the whimsical schemes launched by CM Nitish Kumar. Prohibition law is one such law which is a total failure but government is still pushing it because of ego attached to it. 

Despite the liquor ban in Bihar, liquor is available on the ground level wherever you go. Liquor mafia has come up which smuggles and supplies liquor everywhere in the state, and the Police is busy playing cat and mouse game with them. Is it really worth it? The state is crime infested and law and order is still not good enough - in such a state is it good idea to involve the Police in chasing liquor suppliers? At places even such suppliers get police protection and end up creating a mafia raj. Several murders and other crimes are happening related to the illegal liquor business. On the other hand, due to the liquor ban, people are forced to drink liquor of questionable quality. 

Due to the liquor ban, the state of Bihar is facing huge revenue collection shortage. So far, CM Nitish Kumar has been taxing real estate transactions because he thinks that "only Rich people buy land/ real estate" which is totally a myopic view. Real estate sector creates huge employment of workers and craftsmen of all kind and it is really a bad idea to stunt its growth by hiking the stamp duty and registration fees. 

CM Nitish Kumar should show some maturity and remove the liquor ban in Bihar as soon as possible. He should give out licenses to eligible parties and allow its regulated sale. In this manner, the state will be able to earn revenue which it can spend on necessary items. 

Disclaimer: I am a teetotaler and have never consumed alcoholic products.