The Kerala government has decided to levy 'Covid cess' on liquor. The state government has thereby proposed to hike the liquor prices by charging 10 to 35 percent Covid cess. Liquor sale is one among the most precious resources of the state's economy.
Cess imposed on liquor
The decision was taken following the cabinet meeting on Wednesday, May 13 that has also decided to bring in an ordinance regarding the same.
Following the decision on the Covid cess, the prices of both Indian made foreign liquor and beer are expected to zoom.
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.
According to the reports, the state has over 3,590 toddy shops across, which the government has let open from Wednesday.
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.
States hike liquor prices
As liquor outlets are a good source of income, most of the states including Andhra Pradesh, Karnataka, Delhi and Goa have imposed cess on the liquor sales.
Goa, known for its cheap booze has increased the price with an additional excise duty of Rs 25 to 30 per litre of liquor.
Meanwhile, many states have also opted for home delivery facility of alcohol so as to avoid the massive crowd gathering in front of the liquor outlets.
