Here's why booze bans don't work

Mizoram is the latest to join a long list of states that have tried their hand at banning liquor. Ultimately, governments undo the ban a few years down the line. One, because it doesn’t work. Two, because of finances. Taxes from alcohol sales roughly form a quarter of state revenues. If this stream suddenly stops, states have to compulsorily cut some important spending. Investors shy away, so do tourists. Eventually, states give up and liquor flows freely again...

First, history tells you prohibition doesn't work

Currently, prohibition is in place in these states:

*Gujarat
Illegal liquor supply channels in Gujarat operate almost like any other organised activity. Chief minister Vijay Rupani has sought compensation for revenue loss on account of prohibition.

*Bihar
In the case of Bihar, where prohibition was enforced in 2016, neighbouring West Bengal, Jharkhand and Uttar Pradesh saw a sharp rise in excise revenue, suggesting that liquor from these states was being smuggled into Bihar.

*NAGALAND

*MANIPUR
(lifted in 5 districts)

*LAKSHADWEEP

*MIZORAM
(proposed)

2. Prohibition, particularly in case of alcohol, encourages bootlegging, which becomes a lucrative activity despite high risks. In fact, booze smugglers love prohibition and so do officials who get bribes.

3. Why do governments push for prohibition? The motive could be winning women’s votes, reducing crime, solving social problems, preventing road accidents, improving health. But people don’t stop drinking.

4. Alcohol taxes contribute a quarter to state coffers; prohibition strains state finances.

HOLY PLACES
An alcohol ban is currently in place in Ayodhya town. The Yogi government wants to extend it to the district of Ayodhya (formerly Faizabad). Similarly, localised curbs in Vrindavan, Govardhan and Barsana are to cover the whole of Sri Krishna Janmasthali.

BANNED ABROAD
*Saudi Arabia, Sudan, Kuwait, Libya, Afghanistan, Brunei, Mauritania, Somalia

*Pakistan, Qatar, Maldives, Iran, Bangladesh (excluding non-Muslims

*Indonesia (prohibition in small business shops)

*Sri Lanka (curbs on women)

*UAE (prohibition in the emirate of Sharjah only)