The government announced a 4% increase in the sales tax on Indian Made Foreign Liquor (IMFL) on Wednesday, which will result in higher prices for alcohol in Kerala. The decision was made at a meeting of the Kerala Cabinet, which was presided over by Chief Minister Pinarayi Vijayan. The ToT, which is a 5% tax imposed on distilleries that produce and sell foreign alcoholic beverages in the state, will no longer be applied.
The Kerala State Beverages Corporation has been granted permission to raise its warehousing margin by 1%, according to the CMO statement. According to the statement, there will not currently be any pricing changes for foreign alcoholic beverages purchased from Corporation distilleries. In order to make up for the revenue lost from the ToT exemption for distilleries, the statement also stated that the current Kerala General Sales Tax rate would be raised by 4%.
The Kerala General Sales Tax Act, 1963, would be amended in order to accomplish this, according to the statement. For customers, the cost of imported alcoholic beverages will rise by 2%. The statement claims that the Cabinet also decided to give the Kerala State Women’s Development Corporation an additional government guarantee worth Rs 100 crore so that it could obtain funding from the National Minority Development Finance Corporation.
The standards/guidelines used to determine whether offenders qualify for special sentencing relief on holidays like Independence Day, Republic Day, and so forth will be updated. According to the statement, it has decided to purchase brand-new Mahindra Bolero cars for the police, excise, and fingerprint bureaus.