Liquor to get even more costlier in Kerala; Rs 30 extra on bottles costing up to Rs 1000

BEVCO has now confirmed that due to an increase in sales tax, liquor prices will increase by Rs 30 rather than Rs 20, as previously reported. 

Thiruvananthapuram: The Kerala State Beverages Corporation (BEVCO) has informed that the price of alcohol costing over Rs 500 will attract a levy of Rs 10 besides the cess proposed in the state budget. 

Finance Minister KN Balagopal, while presenting the state's budget had proposed a cess of Rs 20 for each bottle of Indian-Made Foreign Liquor (IMFL) in the price range of Rs 500-999 and Rs 40 for each bottle costing above Rs 1,000, expecting an additional revenue of Rs 400 crore.

BEVCO has now confirmed that due to an increase in sales tax, liquor prices will increase by Rs 30 rather than Rs 20, as previously reported. At the same time, instead of Rs 40, the price of alcohol above Rs 1000 will increase by Rs 50.

Meanwhile, BEVCO reportedly will destroy about 50 lakh litres of extra stock of beer that were bought in June, the previous year. These were the stocks that could not be sold out as beer sales drop during the monsoons.

As a measure to raise additional funds, the ruling Left government imposed a Social Security Cess of Rs 2 on the sales of petrol, diesel and alcohol, resulting in higher prices for all three. The state government expected an additional revenue of Rs 750 crore to the Social Security Feed Fund. Kerala is experiencing a financial crisis. The state government has blamed the Centre's policies and the latter's decision to reduce its borrowing limit. However, Balagopal had stated during the budget session that the state is not trapped in debt.