Finance Minister K.N. Balagopal indicated on Thursday that a hike in the sales tax on liquor could be on the cards.
During the debate on the Kerala General Sales Tax (Amendment) Bill, 2022 in the Assembly, Mr. Balagopal said neither the base price nor the tax on liquor has been increased in over two years in the State. He hinted that the government may need to go in for an increase ‘‘in future’‘ but did not go into details. The Kerala General Sales Tax (Amendment) Bill, 2022, which envisions a 4% hike in the tax on foreign liquor to compensate for a waiver of the 5% turnover tax on distilleries, was passed by the House amid objections raised by the Opposition United Democratic Front.
UDF members led by Leader of the Opposition V.D. Satheesan blamed the government for thrusting a price hike on ordinary consumers for helping out distillers. Left Democratic Front members countered that the turnover tax was applicable only to distilleries in Kerala and not to liquor arriving from outside the State, a discrimination that the Bill sought to remove.
Finance Minister K.N. Balagopal and Excise Minister M.B. Rajesh said the Bill did not envision a major hike as was being made out by the UDF. The price of only one brand will go up by ₹20 per bottle and several others only by ₹10, Mr. Balagopal said. In effect, only a 2% hike in tax will apply, he added.
The Bill came up for discussion on Thursday after the Opposition blocked a move by the government to hastily introduce and pass it on Wednesday without a discussion.
Other Bills
The House also passed the Kerala Veterinary and Animal Sciences University (Amendment) Bill, 2022, the Kerala High Court Services (Determination of Retirement Age) Amendment Bill, 2022, the Kerala Cashew Factories (Acquisition) Amendment Bill, 2022, and the Kerala Khadi and Village Industries Board (Amendment) Bill, 2022 on Thursday.
Three Bills meant to repeal old laws -- the Dekkhan Agriculturists’ Relief (Repeal) Bill, 2022, the Kerala Plantation Tax (Repeal) Bill, 2021, the Kerala Agricultural Income Tax (Repeal) Bill, 2021 -- also were passed.
