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Business News/ Politics / Policy/  Kerala government approves UDF move to close down bars
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Kerala government approves UDF move to close down bars

The government approved the new liquor policy and also imposed a 5% cess on liquor

A file photo of Kerala chief minister Oomen Chandy. Photo: Vivek Nair/Mint Premium
A file photo of Kerala chief minister Oomen Chandy. Photo: Vivek Nair/Mint

Thiruvananthapuram: In a swift action, a day after Congress-led ruling United Democratic Front (UDF) recommended shutting down over 700 liquor bars attached to hotels below the five-star categories, the Kerala government on Friday approved the new liquor policy and also imposed a 5% cess on liquor.

Announcing the decision at a press conference, chief minister Oommen Chandy said the cabinet would formally ratify the decision in its next meeting.

On another UDF proposal to declare all Sundays as dry days apart from the existing dry days, which include the first day of every month, he said: “The Sunday dry day would commence from 2 October next."

The 5% cess on liquor sold through Kerala State Beverages Corp. Ltd outlets would be used to set up a fund for rehabilitation of employees who lose jobs due to closing down of the bars and for creating awareness against liquor among the people, Chandy said.

A total of 418 bars already remained closed, and the other 312 bars also would be closed this fiscal year, he said.

Stating that the new liquor policy was a final phase to achieve UDF’s goal of taking the state to total prohibition in 10 years, he said government had received legal advise that the now functioning 312 bars also could be closed during the fiscal year itself after completing certain financial formalities on licence fees.

The new liquor policy makes it clear that only five-star hotels will have bars to sell Indian made foreign liquor.

The decision, taken by the UDF leadership meeting presided by Chandy, ended a long-drawn feud in the state unit of the Congress and the coalition as a whole over the question of renewing licences of 418 bars which were found to be lacking in quality.

On UDF recommendation of phasing out Kerala State Beverages outlets, Chandy said 10% outlets would be closed down every year to wipe out them in 10 years and this would come to around 39 shops per year.

Chandy also said new liquor policy was a unanimous decision of the UDF and has the support of all sections in the society.

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Published: 22 Aug 2014, 06:52 PM IST
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