Taxation structure of liquor revised; 100% tax for beer
Thiruvananthapuram: The second state budget of the Pinarayi Vijayan led-government, which was presented by Finance Minister Thomas Isaac on Friday, revised the taxation structure of liquor and other alocoholic beverages.
The tax of beer and liquor has been increased. The sales tax on the Indian-made foreign liquor that cost upto Rs 400 has been revised to 200 per cent, and the tax on liquor that cost above Rs 400 will be 210 percent. Besides, the sales tax of beer will be 100 percent.
The government will import foreign liquor directly to avoid revenue loss caused from its illegal trade. The import duty on foreign liquor and wine has been increased in order to boost the sale of Indian-made foreign liquors.
Rs 6000 will be charged as import duty for one case of foreign liquor, and Rs 3000 for one case of wine. In addition to this, service charge and abkari fees also has been hiked. The government expects a revenue of Rs 60 crore from the new move. The tax structure was revised by eliminating the surcharge and social security cess.