THIRUVANANTHAPURAM: Alcohol will become costlier by 2% from next month in Kerala.
The cabinet on Wednesday decided to waive the 5% turnover tax levied on Kerala-based distilleries and hike the sales tax on liquor by 4% to cover the resulting losses.
The price hike only applies to Indian Made Foreign Liquor (IMFL). Beer and wine have been exempted. The hike will come into effect after the assembly, which convenes on December 5, passes an amendment to the Kerala General Sales Tax Act, 1963, and a subsequent notification is issued.
“Most moving brands, those in low and medium price category, will see the price rise by Rs 10 to Rs 20. The minimum hike would be Rs 10 while the maximum would be 2% of the current price,” said a source with Bevco (Kerala State Beverages Corporation). The popular Jawan Rum, produced at the state-run Travancore Sugars and Chemicals Ltd, will get dearer by Rs 10.