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Monday, 05 February, 2018, 16 : 00 PM [IST]

Foreign Liquor to become costlier in Kerala

In the name of protecting the market of Indian Made Foreign Liquor (IMFL) in the State, Kerala government has decided to impose competitive tax on Foreign Made Foreign Liquor (FMFL). In the Budget proposals for 2018-19 presented by the State Finance Minister, Dr Thomas Issac has proposed competitive tax, special fee, etc., on FMFL. He also proposed to vest the trade of FMFL with the State Beverages Corporation to discourage illegal trade and loss of revenue to the exchequer.

Besides the import duty of 150%, the budget has proposed an additional tax of 78% on Foreign Liquor and 25% on Foreign made Wine. The basic price of FMFL will be fixed at INR 6,000 per case and for Foreign Made Wine will be fixed at INR 3,000 per case, so that the sale of FMFL does not affect the market of IMFL. Further, a special fee of INR 87.70 per proof litre will be levied according to the Abkari Act, on FMFL. A special fee of INR 1.25 per bulk litre will be levied on Foreign Made Wine, the Finance Minister said in his budget speech.

Meanwhile, the Finance Minister also proposed to rationalised the tax rate on IMFL sold in the State.  The sales tax rates of IMFL having price up to INR 400 will be fixed at 200% and for price above INR 400 will be fixed at 210.94%. The tax rate of beer will be fixed at 100%. However, the decision if implemented is not expected to impact the current rates, as the Budget proposed to do away with many cess being levied on IMFL in the state.
 
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