Liquor makers urges Kerala Govt not to impose additional sales tax on IMFL

Liquor makers have urged Kerala government to t impose ditional sales taxes on Indian me foreign liquor (IMFL) which alrey attracts steep levies of up to 240 per cent in state.

In a letter to Kerala government, Federation of Alcohol Bever Producers (India) has ted that IMFL is paying high taxes of up to 240 per cent in Kerala in comparison to imported liquor which is taxed at 88 per cent.

"As a result, a product of same quality sells at Rs 2,600 if me in India compared to Rs 1,600 if imported," said association in a letter to state government.

association furr said that state government is expected to impose an ditional sales tax of 35 per cent on IMFL, and t on imported liquor.

“This is in our view is taking matter to bizarre proportions. Just to give you a reference after this tax difference between two will go to an incredible 189 per cent. Inste of rectifying error, Government is furr compounding it,” association's Director-General Vid Giri said.

Recently, several state governments imposed ditional taxes on liquor while allowing sales in third phase of lockdown. Liquor sales remained suspended for more than 40 days in first two phases of lockdown to contain coronavirus panedmic, hitting state revenue.

"We reiterate our earnest request to review Excise Policy of Kerala and issue necessary amendments to remove blatant discrimination in favour of imported products,” association said.

Earlier, alcoholic bevers industry bodies h said that levy of ditional taxes on liquor by several state governments, as high as 75 per cent, will be counterproductive in long run.

States like Andhra Presh, Delhi and West Bengal have imposed 75 per cent, 70 per cent and 40 per cent ditional levy respectively on liquor, which resumed window sales from May 4 after a gap of almost 40 days in during ongoing lockdown.