It has been anticipated that the government's decision to close down 732 liquor bars will result in a revenue loss of Rs 1,800 crore to the state exchequer.
So now, be ready to pay a hefty mark-up to enjoy classy wine.
What has the government done to overcome crisis?
- The Cabinet hiked tax on Indian Made Foreign Liquor by 20 per cent.
- It has imposed a five per cent cess for rehabilitation of workers who lost their jobs due to closure of bars. This is said to pose a burden of net Rs 1,130 crore to the exchequer.
- The tax on wine and beer would rise from 50 per cent to 70 per cent, bringing an additional Rs 100 crore to the state kitty.
- The tax on cigarettes and tobacco products has been raised by eight per cent from the existing 22 per cent to mop Rs 264 crore.
- Five per cent of the revenue accruing through this would be utilised to fund the free cancer treatment programme.
- Land taxes, duties and fees for various kinds of property transactions would also go up with the lifting of the ceiling of Rs 1000 on them.
- Water charges would go up by 50 to 60 per cent, depending upon the slab of consumption.
What is Kerala's new liquor policy?
- As per the policy, only five-star hotels in Kerala can serve liquor.
- No renewal of licences for the 418 bars which remain closed now.
- From April 2015, the existing 318 bars will not get their licences renewed.
- Every year 10 per cent of beverages corporation outlets will be phased out so in the next 10 years, all of them will be shut down.
- Bars and Bevco outlets will remain shut on Sundays and every first day of the month.
- A rehab package for habitual drinkers and bar employees, Punarjani, to be set up.
Effects of the liquor policy
- The new liquor policy is aimed at shutting down bars attached to hotels below the five-star category.
- The policy is aimed at reducing availability of liquor in the State.
- It will lead to shut down of 732 bars across the State and will brand them as 'sub-standard".
- The ban order comes into force from September 11, 2014.