Home / News / India /  Kerala: Liquor price to go up as state govt raises sales tax by 4%

As the Kerala government decided to raise the sales tax on liquor by 4%, the price of Indian Made Foreign Liquor (IMFL) is expected to increase in the coming days. The decision to raise tax came in a meeting of the Kerala cabinet led by Chief Minister Pinarayi Vijayan. The government also decided to forgo the 5% Turnover Tax (ToT) levied on distillers who are manufacturing and selling foreign liquor within Kerala.

"Currently, there will be no change in the price of foreign liquor procured from the Corporation distilleries..." the statement from the Chief Minister's office said.

The decision to raise the sales tax on liquor was taken under the Kerala General Sales Tax Act, of 1963. A statement from the Chief Minister's office also gave a green signal to the Kerala State Beverages Corporation to increase the warehouse margin by 1%. The price of foreign liquor will be increased by 2%.

The government has decided to introduce a bill in the Kerala assembly as its decision to waive off the Turnover Tax (ToT) will result in a loss of revenue to the state and it would try to cover for the same by raising the present Kerala General Sales Tax rate which will be increased by 4%.

"For that, a Bill will be presented in the Assembly to amend the Kerala General Sales Tax Act, 1963,'' the statement said.

To allow them to avail funds from the National Minority Development Finance Corporation, the Kerala cabinet also decided to provide an additional government guarantee of 100 crore to the Kerala State Women's Development Corporation.

The government also announced that the criteria for granting special relaxations to prisoners on occasions like Independence Day and Republic Day will also be revised. The statement also added that the police, excise, and fingerprint bureaus will get new Mahindra Bolero vehicles.

With inputs from PTI.

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