‘One Nation, One Tax’ a Hollow Slogan: States, Centre responsible for Unfair Alcohol Tax Chaos
Even worse, no serious effort has been made by the GST Council or Finance Ministers to fix this broken system
One Nation One Tax – Tax chaos – Alcohol – taxscan
One Nation One Tax – Tax chaos – Alcohol – taxscan
The ludicrous disparity in alcohol prices across Indian states has once again exposed the deep hypocrisy behind the oft-touted slogan of "One Nation, One Tax." A bottle that costs Rs 100 in Goa is sold for Rs 305 in Karnataka, Rs 229 in Telangana, and Rs 205 in Rajasthan—a gap driven purely by skewed and opportunistic state-level excise duties.
This chaotic pricing regime is not only irrational but also a direct failure of both the Central and State governments to establish a unified tax system. The Centre’s lack of leadership and States’ relentless greed—under the guise of revenue generation—have collectively demolished any notion of tax fairness or national economic cohesion.
States like Karnataka, which imposes the highest excise duty in the country at 80%, are effectively punishing consumers while fueling illegal trade. Bootlegging thrives, and states with steep levies end up losing more in revenue due to cross-border alcohol smuggling than they gain through taxation. Goa, which levies the lowest excise duty at 55%, has remained a hub for cross-border buyers, particularly from neighbouring high-tax states.
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Finance ministers are reportedly unwilling to cede control over liquor taxes and VAT on fuel—now among the few revenue levers left to them post-GST. In an era when states are dishing out populist freebies and drowning in deficits, liquor taxation has become their crutch, abused with impunity and without accountability.
This patchwork of excise duties not only cripples consumer choice and disrupts fair trade, but it makes a mockery of the idea of cooperative federalism. Citizens are being treated unequally based on geography, and governments—both central and state—appear complicit in maintaining this discrimination for political and financial convenience.
Industry experts have long called for a rational, uniform tax structure to ensure sustainable growth and reduce excessive consumption through pricing ladders and premiumisation strategies. But their appeals have fallen on deaf ears.
In short, what India currently has is not a unified market but a fractured patchwork stitched together by political short-sightedness and fiscal desperation. Until serious reforms are made, ‘One Nation, One Tax’ will remain nothing more than an empty slogan, drowned in the bitter taste of unfairness and inefficiency.
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