THIRUVANANTHAPURAM: The government on Thursday claimed that the proposed price revision of liquor was marginal and selective. Finance Minister K N Balagopal hinted that liquor prices may go up in future considering the inflationary trend. Balagopal and Excise Minister M B Rajesh who spoke during the discussion on the Kerala General Sales Tax (Amendment) Bill, 2022, said the decision to hike the KGST on liquor by 4% was after due deliberations. The hike was to make up for the government’s decision for a total waiver on the Turnover Tax (ToT) for distilleries.
Rajesh said the number of NDPS cases saw a rise along with the general dip in liquor users. “There were 720 bars in Kerala when the previous UDF government came to power. NDPS cases were low at that time. The cases saw a rise after several bars were closed down as part of that government’s changed liquor policy,” he said.
The minister said the prices of most of the brands will not increase, especially cheap brands. The maximum increase per bottle would be Rs 20. The revenue loss due to the withdrawal of 5 pc ToT is compensated by a 4% increase in KGST. The ToT withdrawal is in the wake of a huge increase in the price of Extra Neutral Alcohol (ENA). He said the price of ENA per litre was Rs 50.84 in 2017 which rose to Rs 67 in January 2022 and Rs 72 in November.
“Kerala-based distilleries were forced to stop production. There was a shortage of liquor in the state. Several customers had complained to me over the phone. We also faced the risk of people switching to spurious liquor,” he said. He further said the ToT was applicable only for Kerala-based distilleries and hence a discriminatory tax.
The Leader of the Opposition said the government’s decision would affect family budgets. “The government is imposing a 251% tax on liquor and the latest decision will increase the burden on families,” he said. He said why the government collected export duty from Kerala-based distilleries if it had serious concerns for them. Such a duty is not levied in other states, he said.
Balagopal blamed the central government for the price rise. He said the government’s ToT revenue was Rs 150-170 crore. The hike is to reclaim this money. It has been two and a half years since the previous tax revision. The basic price did not see any hike in two years. He claimed that only nine brands will be affected by the price rise. The bill was passed in the house.
CM: GOVT CHANGING PROCEDURES FOR VACANCY REPORTING
T’Puram: The government has started measures to create an efficient job vacancy reporting system, Chief Minister Pinarayi Vijayan said in the assembly on Thursday. The procedures to be followed to report vacancies will be revamped, he said. “The present system needs to be changed. A software will be developed to automatically report vacancies in various departments,” he said. He was responding to the calling attention motion of MLA Shafi Parambil
CM hopeful of SilverLine, Oppn says won’t let project happen
T’Puram: Chief Minister Pinarayi Vijayan on Thursday informed the assembly that the state government will go ahead with the SilverLine project once it receives approval from the Centre. However, Leader of Opposition V D Satheesan said the UDF will not allow the project to be implemented even if the Union government gives the approval. The Opposition also wanted the government to address the concerns of landowners affected by the project survey and laying of stones.