Kerala has decided to hike liquor prices by charging a 10-35 per cent Covid-19 cess, as the State, which already boasts some of the highest rates for spirits, attempts to mop up precious resources for an economy thoroughly battered by the pandemic.
A meeting of the State cabinet this morning decided to bring out an ordinance to the effect. Prices of both Indian Made Foreign Liquor and beer, concurrently taxed at 202-212 per cent and 102 per cent respectively, are expected to zoom. The existing tax for foreign-made foreign liquor is 80 per cent. Earlier, the State had wisely chosen to take a cue from some of its peers not to reopen the liquor vends and risk crowds, for fear of fuelling the virus’ spread.
The existing tax for foreign-made foreign liquor is 80 per cent. Under the new decision, the Kerala government has decided to impose 10 percent cess on beer and wine while a maximum of 35 percent cess will be levied on foreign liquors.
The wholesale and retailing vending of alcohol, tax, excuse duties and gallonage fees in the sale of liquor in Kerala is undertaken by Kerala State Beverages Corporation. The 2019-20 budget had revised the tax rate on alcohol upwards by two percent.
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