Bihar Chief Minister Nitish Kumar imposed a complete ban on liquor (foreign and local), which will come into effect immediately across the state from April 4. The complete ban on liquor came into effect on Friday, April 1 when Nitish Kumar stressed banning alcohol across the state. One of the state government senior officials informed the media that “the state cabinet gave its nod to Excise and Prohibition department’s proposal to issue a notification for implementing prohibition in rural areas besides putting a blanket ban on country-made and spiced liquor.” According to the state government's new rule, the ban states that any person indulging in manufacturing trade, transportation, sale and consumption of country-made and spiced liquor across the state will be punished for violating the stringent provisions of the Bihar Excise (Amendment) Act, 2016. However, several Bihar police officials also took an oath to refrain from alcohol and will work to ensure successful prohibition in the state.

Bihar has raised a demand for recognition as a special state from the Centre on multiple occasions. The state is now facing heavy annual revenue loss, courtesy of prohibition. Official figures suggest a projected annual loss of over Rs 3,300 crore from the state’s treasury. Meanwhile, the recommendations of the Seventh Pay Commission have inflicted an additional burden of Rs 3,000 crore, which is going to make things even more challenging for the state’s finance department. Bihar is already facing problems in paying salaries to government teachers; officials of the department said that teachers have not been paid for the past six months while the amount payable to farmers for the kharif season yield is also pending.

Bihar has seen two major tax increments since it went dry in April this year. In the first week of August, the state cabinet gave its nod to the withdrawal of the 2 percent concession on diesel, which led to an additional 2 percent VAT on diesel, hiking prices, and irking consumers.

Officials in the finance department justified the move and said that it will add over Rs 22-25 crore to the state’s treasury every month. BJP State President Mangal Pandey said, “This is just another way of exploiting people’s pockets, which are already getting shorter now.” He added, “The lead-up to this situation has been the decision of prohibition, which in a way is good and we support it completely but on the other hand it has surely caused revenue burdens for the state.”

The parent legislation was passed in the Assembly on April 1, which initially banned country liquor. It was then upgraded to an umbrella ban, bringing foreign liquor within its ambit as well, making Bihar the fourth Indian state to declare itself dry. The decision to introduce prohibition came as part of Nitish’s 2015 electoral promises, which included an assurance to the women of Bihar on the complete banning of liquor. Prohibition has made women voters happy but the new provisions have started creating new challenges at all levels for the government. The amendment awaits Governor Ram Nath Kovind’s formal assent to become law. The Governor is still in consultations with his legal team over the new rules though it is binding on the governor to approve the bill passed by the assembly.

—Prashant Tewari, Editor-in-Chief

Bihar Chief Minister Nitish Kumar imposed a complete ban on liquor (foreign and local), which will come into effect immediately across the state from April 4. The complete ban on liquor came into effect on Friday, April 1 when Nitish Kumar stressed banning alcohol across the state. One of the state government senior officials informed the media that “the state cabinet gave its nod to Excise and Prohibition department’s proposal to issue a notification for implementing prohibition in rural areas besides putting a blanket ban on country-made and spiced liquor.” According to the state government's new rule, the ban states that any person indulging in manufacturing trade, transportation, sale and consumption of country-made and spiced liquor across the state will be punished for violating the stringent provisions of the Bihar Excise (Amendment) Act, 2016. However, several Bihar police officials also took an oath to refrain from alcohol and will work to ensure successful prohibition in the state.

Bihar has raised a demand for recognition as a special state from the Centre on multiple occasions. The state is now facing heavy annual revenue loss, courtesy of prohibition. Official figures suggest a projected annual loss of over Rs 3,300 crore from the state’s treasury. Meanwhile, the recommendations of the Seventh Pay Commission have inflicted an additional burden of Rs 3,000 crore, which is going to make things even more challenging for the state’s finance department. Bihar is already facing problems in paying salaries to government teachers; officials of the department said that teachers have not been paid for the past six months while the amount payable to farmers for the kharif season yield is also pending.

Bihar has seen two major tax increments since it went dry in April this year. In the first week of August, the state cabinet gave its nod to the withdrawal of the 2 percent concession on diesel, which led to an additional 2 percent VAT on diesel, hiking prices, and irking consumers.

Officials in the finance department justified the move and said that it will add over Rs 22-25 crore to the state’s treasury every month. BJP State President Mangal Pandey said, “This is just another way of exploiting people’s pockets, which are already getting shorter now.” He added, “The lead-up to this situation has been the decision of prohibition, which in a way is good and we support it completely but on the other hand it has surely caused revenue burdens for the state.”

The parent legislation was passed in the Assembly on April 1, which initially banned country liquor. It was then upgraded to an umbrella ban, bringing foreign liquor within its ambit as well, making Bihar the fourth Indian state to declare itself dry. The decision to introduce prohibition came as part of Nitish’s 2015 electoral promises, which included an assurance to the women of Bihar on the complete banning of liquor. Prohibition has made women voters happy but the new provisions have started creating new challenges at all levels for the government. The amendment awaits Governor Ram Nath Kovind’s formal assent to become law. The Governor is still in consultations with his legal team over the new rules though it is binding on the governor to approve the bill passed by the assembly.

—Prashant Tewari, Editor-in-Chief