Kerala to hike IMFL prices steeply amid COVID-19 lockdown

The Kerala government has decided to increase the sales tax on the Indian-made foreign liquor (IMFL) in order to gain some extra revenue. The state cabinet has recommended increasing ten per cent tax for beer and wine and 35 per cent for all other categories.

Thiruvananthapuram: The Kerala government on Wednesday decided to increase the price of Indian-made foreign liquor (IMFL) in order to gain some extra revenue amid COVID-19 lockdown and subsequent slowdown in the economy.

The state cabinet, which met here, decided to recommend the Governor to issue an ordinance to increase the sales tax on the IMFL.

It has recommended to increase ten per cent tax for beer and wine and 35 per cent for all other categories.

At present, the sales tax on IMFL is 202 per cent for brands priced up to Rs 400 and 212 per cent for brands above that.

With the new rates, the percentage will increase to 237 and 247 per cent respectively.

"All the major revenue generation options of the state government has been stopped due to the lockdown. Lottery sale was stopped, Bars were closed.

The GST revenue has drastically dropped.Hence the state cabinet has decided to find a revenue generation method," a release issued by the state government said.

The state cabinet has recommended to increase ten per cent tax for beer and wine and 35 per cent for all other categories.

At present, the sales tax on IMFL is 202 per cent for brands priced up to Rs 400 and 212 per cent for brands above that.

With the new rates, the percentage will increase to 237 and 247 per cent respectively.

PTI