THIRUVANANTHAPURAM: Consumers were shocked after the Indian-made foreign liquor (IMFL) price hike that came into effect on Saturday was much more than what was announced in the budget. The hike was announced in the 2023-24 budget to mobilise funds for social security pension payments.
The announcement was that a social security cess of Rs 20 would be collected per bottle priced between Rs 500 and Rs 999. Also, it said the cess on bottles priced above Rs 1,000 would be Rs 40. But the hike implemented by the Kerala State Beverages Corporation (Bevco) was Rs 30 for bottles in the Rs 500-Rs 999 range and Rs 50 for those priced above Rs 1,000.
The Bevco reasoned that the additional charge was due to the proportionate increase in tax. If not, Bevco has to pay the additional tax to the government which will be a burden to the corporation, said a source. The government expects additional revenue of Rs 400 crore per year through the hike.
Earlier, the government had effected a price hike for liquor following a Cabinet decision in November.
It was to make up for the loss due to the government decision to waive the 5% turnover tax on Kerala-based distilleries.
Rs 30 was hiked for bottles in the range of Rs 500-Rs 999
Rs 50 was hiked for bottles priced above Rs 1,000