Kerala on Wednesday said it will increase the price of Indian-made foreign liquor (IMFL) following several states, which have raised alcohol prices sharply to meet the mounting Covid-19 bills and subsequent slowdown in the economy.
The state cabinet has decided to bring an ordinance to this effect.
According to government sources, there will be a hike of 10% in taxes of beer and wine prices, bottles below 600ml will also have a 10% cess and all other categories will see a steep 35% rise in cess.
Chief minister Pinarayi Vijayan is likely to announce the decision later in the evening during his routine press briefing.
Liquor outlets in the state are likely to be opened on May 18, after the third phase of the nationwide lockdown is scheduled to end. Similarly, it is also planning to allow bar hotels to sell liquor in retail quantity.
The government has also decided to introduce virtual queues to avert a possible rush in outlets—customers will be allotted time once they place their order.
This comes after many states had witnessed serpentine queues when outlets opened and at some places, police had to resort to baton charge to disperse the unruly crowd.
In neighbouring Tamil Nadu, the high court had ordered the closure of wine shops and the peeved government had moved the Supreme Court.
Kerala is a tipplers’ paradise and it comes second in the country after Punjab in terms of per capita liquor consumption.
Statistics show liquor remains one of the highest revenue earners of the state—on an average the government-owned Beverages Corporation sells liquor worth Rs 35 to 40 crore a day and in 2018-19 it sold bottles worth Rs 14,508 crore.
Excise duty on liquor is between 300% and 500% in the state—a Rs 100 bottle of rum in the brewery will cost in the market Rs 400-500.
