Kerala Budget 2018: Liquor prices in Kerala to increase as govt imposes heavy tax on alcohol

Presenting the second budget of Pinarayi Vijayan government, Kerala Finance Minister Thomas Isaac today announced schemes to tackle hunger in the state and for the rehabilitation of areas hit by Cyclone Ockhi in 2017.

To increase the revenue of the debt-ridden state, the government plans to impose heavy tax on liquor.

The tax rate for Indian made foreign liquor (IMFL) bottles below 400 ml of alcohol would be increased from 125% to 200%. For the bottles containing more 400 ml alcohol, the sales tax will be increased from 135% to 210%. The tax for beer would be increased from 70% to 100%.

Kerala State Beverages Corporation Ltd (Bevco) will now be allowed to sell foreign-made liquor at their outlets in the state, he announced. 

The state currently receives an annual revenue of Rs 12,000 crore from liquor sales.

Thomas allocated Rs 2,000 crore for



coastal area development, which include funds for rehabilitation of areas hit by Cyclone Ockhi. 

Cyclone Ockhi had claimed at least 77 lives in Kerala and Tamil Nadu. The state has also allocated  Rs 20 crore for a project to tackle hunger in urban and rural areas.

In his marathon Budget speech of two hours, Thomas also announced projects focusing on public health services. He has allocated Rs 1,685 crore health services in the state. 

The government will also launch an ambulance service on the lines of the popular ride-hailing application Uber. 

The state has set aside Rs 20 crore to set up a factory to manufacture cancer medicines. 

To revive the Kerala state road transport corporation, the Finance Minister has sanctioned a Rs 3,500 crore loan. He has also allocated Rs 80 crore to boost tourism sector.