The cabinet has recommended an increase of 10 per cent tax for beer and wine (Representational)
Tipplers in Kerala will have to shell out more for their daily booze with the Kerala government, which is facing a severe financial crisis due to the COVID-19 induced lockdown, deciding to raise the price of liquor by 10-35per cent, to bring in extra revenue to its coffers.
The decision to hike the price of Indian-made foreign liquor (IMFL) was taken at the cabinet meeting chaired by Chief Minister Pinarayi Vijayan on Wednesday.
It was also decided to recommend to the Governor to issue an ordinance to increase the sales tax on the IMFL.
"All the major revenue generation options has stopped due to the lockdown. Sale of lottery tickets has ceased, bars are closed and GST revenue has drastically dropped. Hence the state cabinet has decided to find a revenue generation method," a release issued by the state government said.
The cabinet has recommended an increase of 10 per cent tax for beer and wine and 35 per cent for all other categories.
At present, the sales tax on IMFL is 202 per cent for brands priced up to Rs 400 and 212 per cent for brands above that.
With the new rates, the prices will increase to 237 and 247 per cent respectively.
Despite the high tax, Kerala has the dubious distinction of having the highest per capita consumption of liquor.
Excise department sources said the government has plans to open the state-run liquor outlets after the third phase lockdown ends on May 17 but the decision will be taken only according to the situation prevailing then.
"The shops are likely to be open from May 18. But the final decision will be taken only after assessing the COVID-19 situation prevailing then. We had declared that we have flattened the curve but a day later, we had new patients. More patients reached the state from other states and from abroad. On Thursday, the first train from Delhi will reach Kerala. The government is likely to take a decision after assessing the situation," the sources told PTI.
Meanwhile, the over 3,500 Toddy shops, closed since the past 50 days due to the lockdown, were all set to open from Wednesday, but only a few shops commenced business due to lack of stocks.
Those which were open had to shut within hours as the stocks did not last long and many had to return disappointed.
As per new lockdown regulations, not more than five people would be allowed ata time in a toddy shop and the timings are from 9 AM to 7 PM.
"Today, a few toddy shops were opened in the state. Most of them had to close early as they were low on stock.
The shops were not getting enough stock to even meet their regular daily quota," the sources added.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)