Alcohol is set to be dearer in Kerala after the government on Wednesday announced a hike in sales tax of Indian Made Foreign Liquor (IMFL) by four per cent. In a meeting of the Kerala Cabinet, chaired by Chief Minister Pinarayi Vijayan, a decison was taken to forgo the five per cent Turnover Tax (ToT) levied on distilleries that are manufacturing and selling foreign liquor within the state.
According to the CMO statement, the Kerala State Beverages Corporation has also been allowed to increase its warehouse margin by one per cent.
"Currently, there will be no change in the price of foreign liquor procured from the Corporation distilleries..." the statement said.
The statement added that the waiving off ToT on distilleries would result in a loss of revenue and to cover that the present Kerala General Sales Tax rate would be increased by four per cent.
"For that, a Bill will be presented in the Assembly to amend the Kerala General Sales Tax Act, 1963,'' it said.
The price of foreign liquor will be increased by two per cent for customers.
According to the statement, the Cabinet also decided to grant an additional government guarantee of Rs 100 crore to the Kerala State Women's Development Corporation to avail funds from the National Minority Development Finance Corporation.
The criteria/guidelines to identify eligible prisoners for granting special relaxation of sentences on occasions like Independence Day, Republic Day and so on, would be revised.
It also decided to buy new Mahindra Bolero vehicles for the police, excise and fingerprint bureaus, the statement further said.