Liquor became expensive, the government increased the tax in this big state

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Photo: File Liquor Price Hike

There is bad news for the drinkers as drinking has become even more expensive now. This hit of inflation on liquor lovers has been done in Kerala, a major consumer state of liquor in South India. The Pinarayi Vijayan government here has decided to levy even more tax on liquor. After the latest order, the tax on the sale of liquor in Kerala has been increased by 4 percent. This decision of the state government will also affect the retail prices of Indian Made Foreign Liquor (IMFL).

Vijayan government took two important decisions

Two important decisions were taken in the cabinet meeting chaired by Chief Minister Pinarayi Vijayan. Where the first decision was regarding increasing the tax on liquor. On the other hand, the second decision was also to withdraw the five per cent turnover tax (TOT) imposed on distilleries producing and selling foreign liquor in the state. The meeting also decided to increase the tax on sale of foreign liquor to four per cent, levied under the Kerala General Sales Tax Act, 1963.

No change in corporation’s liquor

Kerala State Beverages Corporation, a liquor wholesaler, has also been approved to increase its storage margin by one per cent, according to a statement issued by the Chief Minister’s Office (CMO) here. The statement said, “At present there will be no change in the price of foreign liquor purchased from corporation distilleries.” After this decision of the state government, the price of foreign liquor will be increased by two percent.

Important statistics related to alcohol in India

Reuters has quoted IWSR Drinks Market Analysis as saying that India is the world’s largest alcohol market. According to a recent report, India’s liquor market is worth $20 billion. The liquor market is set to grow at a rate of 7% annually during the period 2021-25. Alcohol consumption in India dropped by 12 percent during Covid. Among states, Arunachal Pradesh has the highest proportion of both males (53%) and females (24%) who drink alcohol. Among females, Arunachal Pradesh is followed by Sikkim (16%); Among males, it is followed by Telangana (43%). Apart from Arunachal and Telangana, alcohol consumption among men is high (40% and above) in the upper Brahmaputra region of Assam, districts of Jharkhand and Bastar region of Chhattisgarh, and Chhota Nagpur region of Jharkhand and Odisha.

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