Kerala initiates new excise policy process; low-alcohol beverage stand unchanged, says Minister

Thiruvananthapuram: Kerala Minister M Liju on Thursday said the state government has begun the process of formulating a new excise policy and will hold extensive consultations with stakeholders before finalising it.

Speaking to reporters here, Liju said the government's stand on low-alcohol beverages had not changed, and clarified that the revised Budget had only proposed a tax slab for such products.

"The process of preparing the excise policy has already begun. We will hold discussions with various organisations, consolidate their views and bring out a detailed excise policy soon," he said.

Responding to questions on whether low-alcohol beverages could be sold through Kerala State Beverages Corporation outlets, the state excise minister said the government had maintained the same position from the beginning.

He said the concept of low-alcohol beverages was introduced in Kerala by the previous LDF government, and that the Finance Bill made it clear that the tax proposals would come into effect only after the required notifications were issued.

"The Chief Minister (V D Satheesan) has already stated that a decision on issuing the notifications will be taken only after the excise policy is finalised," Liju said.

The minister confirmed that the process of preparing the excise policy had already begun, and said the government would formulate the policy after holding wide-ranging consultations.

On the ongoing inquiry into issues related to the production of the state-owned 'Jawan' liquor brand, Liju said a team headed by the Tax Secretary was conducting an investigation and had visited Travancore Sugars to collect evidence.

He said production of the 750 ml bottles had come to a halt during the previous LDF government's tenure, while production of the one-litre bottles continued for some time.

The issue came to the notice of the present government after production of the one-litre bottles was disrupted.

Production has since resumed, though some technical issues remain, he said.

"The management has been directed to ensure that production is not disrupted under any circumstances, especially with Onam approaching. Travancore Sugars and Malabar Distilleries have also been instructed to resolve all technical issues on a priority basis," Liju said.

The minister said CM had already clarified the government's stand on the Wayanad tunnel project in the wake of the recent landslide.

He said environmental concerns had been raised when the project was conceived, and that the Centre had imposed around 50 conditions while granting approval.

"All these aspects will be examined before moving forward. The CM has already stated the government's position. The government will take an appropriate decision after detailed studies," Liju said. (PTI)