THIRUVANANTHAPURAM: Shortage of cheaper brands in the outlets of Kerala State Beverages Corporation will end in a few days. The Distilleries Association has called off its non-cooperation protest against the corporation. This follows an assurance by the government to waive off the turnover tax (ToT) on distilleries in the state.
Waiving of turnover tax has been a long-pending demand of distilleries since it is discriminatory in nature. Only distilleries functioning in the state had to pay the five percent ToT. This discriminatory tax went against the industrial-friendly policy as well. The distillers’ demand gained strength after the exorbitant increase in the price of Extra Neutral Alcohol (ENA), it is learnt.
Sources said the next Cabinet meeting will approve the proposal to waive off ToT. A notification will be issued afterwards. Distilleries Association said its members have applied for permits to supply five lakh cases of liquor. The supply will resume in full swing on Monday. Earlier, the Kerala State Beverages Corporation (Bevco) had sought the government’s immediate intervention after distributors cut short supply.
Its outlets are already facing a shortage of cheap brands. The Distributors’ Association, in their meetings with the corporation and excise minister, had warned of a total cut if relief measures are not taken .
The liquor industry is facing an unprecedented crisis as the ENA price has gone through the roof. ENA is the primary raw material for making alcoholic beverages. It is derived from sugarcane molasses or grains. The price saw an increase of 40 pc in recent months, said industry sources. Distributors’ representatives had a meeting with Excise Minister M B Rajesh earlier. They demanded immediate measures like a hike in procurement price or tax rebate. Most of the distributors are on lay off, they informed the meeting.