Kerala - Palakkad   

Liquor policy: no cheers for consumers

Staff Reporter

PALAKKAD: Liquor consumers in the State have nothing to cheer about in the new liquor policy of the State Government. In fact, they have reasons to worry about it. The per capita consumption of liquor in Kerala is the highest in the country.

A 29 per cent increase in the price of Indian Made Foreign Liquor (IMFL), under the new policy that came into effect on April 1, is sure to have an `effect' on them. For the current increase is considered an all-time record.

Liquor consumers feel that it an injustice done to them by the Government. They fear that the price hike will adversely affect legitimate liquor sale and encourage clandestine trade, which will be disastrous for the State, both economically and socially.

An office-bearer of the Liquor Industries Association, Susheel Haksar, says the irony of the situation is that the manufacturers have not increased the price. In fact, the Government has not allowed any increase in the selling price of liquor by the manufacturers during the last two years.

The current price increase is on account of an increase in taxes and levies. Kerala has the highest excise duty for IMFL in the country. Besides, the sales tax is 90 per cent and turnover tax 10 per cent of the supply price. Also, there is the Beverages Corporation's wholesale margin of 36 per cent and retail margin of 20 per cent. All these add up to keep the average consumer in low spirit.

Industry circles say the real danger of such a sudden and sharp increase in the end-consumer price is that the Government has created a situation that will encourage clandestine liquor sale, denying the exchequer of its legitimate revenue. Most of the States have benefited by rationalising their tax system for liquor. Kerala should study these cases and bring out a progressive policy.

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