Thiruvananathapuram: Kerala might follow the lead of other states and increase the tax on alcohol in order to earn some additional income for the state. Kerala government is mulling the possibility of charging additional tax or cess to alcohol as the state’s treasuries have dried up due to COVID-19 pandemic.
Delhi government has imposed a 70 percent increase in the price of liquor as ‘COVID special fee’ as other sources of income became almost nonexistent. Andhra Pradesh increased the tax by 50- 70 percent while Rajasthan has levied an additional 10 percent tax. In Kerala, alcohol is charged with 100 to 210 percent tax currently. Excise department feels that this is really high. And so government may impose cess on alcohol.
The state had collected Rs 300 crore by imposing special cess on alcohol after the 2018 flood.