Former Human Resource Development Minister Shashi Tharoor has criticised the Kerala government for putting ban over alcohol consumption in the state and said it would hamper economic growth and tourism industry.
Talking about Kerala's revenue collection, Tharoor said the alcohol prohibition would massively affect the state revenue as 22 percent of the total tax is collected from excise duty on alcohols.
"It is a widely popular decision, but there are issues with which people have not yet grappled. One is the colossal hit that will be taken by the revenue as 22 per cent comes from alcohol excise. As a result, Kerala will have to cut on its social services which have given it a high social development standing in India," IBNLive quoted Tharoor.
He mentioned about Tamil Nadu government's decision to open outlets of Tamil Nadu State Marketing Corporation, company controlling sale of alcoholic beverages, across TN-Kerala border especially to serve customers from Kerala and said "Kerala will not drink less, but the excise duty will go to Tamil Nadu instead."
He even pointed out that "there is a bit of political competition underway to show one is holier than thou but I don't think everything was fully thought through." When the decision this big is taken without deeper considerations, it fails, like the alcohol ban in Andhra Pradesh, Haryana and the US did, Tharoor added.
