Kerala hikes liquor tax by 35%; virtual queue to avoid crowd at outlets

While toddy sales resumed in Kerala from Wednesday, the state government has decided to hike the tax on liquor prices by 35 percent and beer and wine by 10 percent.

In order to avoid crowding at liquor outlets, the state government is also planning to introduce a virtual queue system at the 300 odd retail liquor outlets as well as to allow bars to sell liquor in bottles.

The state government is yet to decide the date for resuming liquor sales. Only toddy sales were allowed through around 3,500 toddy shops across the state from Wednesday. Customers were not allowed to consume liquor at the shops but could only take in the parcel.

Kerala Finance Minister Thomas Isaac said that there would be an additional revenue of up to Rs. 2,000 crore from the tax hike if there was no dip in liquor sale compared to the previous years. At present the annual revenue from excise is around Rs. 2,500 crore The present tax on IMFL is from 200 to 210 percent and for beer and wine it is 70 percent and 100 percent respectively.

Kerala State Beverages Corporation managing director Sparjan Kumar said that the Kerala Startup Mission would be identifying a startup firm for setting up the virtual queue system. Customers would be able to take tokens for purchasing liquor using an online application as per the proposed plan, he said.