5. The government put a new tax
alcoholic beverages
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The 29 states along with seven union territories in India have adopted different approaches when it comes to taxing and regulating liquor. For instance, the state of Gujarat has entirely banned trade and consumption of liquor since 1961. By contrast, Puducherry, the territory on the Coromandel Coast, earns most of its revenue from alcohol trade.
Some of the states auction retail and wholesale licenses, while others have their own monopolies. Tamil Nadu is one state that has a monopoly on the alcohol trade and employs more than 30,000 people with over 6,000 outlets.
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