May the state government manage excise licences for alcohol and collect tax on it?

Summary

Alcohol is forbidden for every Muslim, and the authorities must prevent alcohol-related activities among Muslims. Non-Muslims cannot be prohibited from drinking it on Islamic legal grounds, but the authorities may ban it or impose specific rules for administrative reasons. If the authorities permit non-Muslims to drink under certain rules, they may still levy tax, as it relates to administrative costs and aims to restrain such activity. The tax may be raised if deemed necessary, and the revenue may be used for administration without being set apart from other taxes.

Written in our own words from the original fatwa — check the source before acting on it.