Medical cess on liquor: KMSCL yet to get Rs 400 crore

Kozhikode: The Rs 150 crore collected as medical cess from liquor buyers should be provided for development activities and to clear dues, demanded the Kerala Medical Services Corporation (KMSCL).

In a report submitted to the State government, KMSCL said the dues of pharmaceutical businesses should be cleared using the Rs 150 crore and an additional Rs 80 crore, to ensure the smooth supply of medicines in the financial year 2022-23.

The Corporation is yet to cater to the orders worth Rs 32 crore placed by local self-government (LSG) bodies since 2018. The LSG bodies had already paid for the medicines.

Incidentally, the crisis was triggered after the Regional Cancer Centre (RCC), and institutes under the Directorate of Medical Education, Directorate of Health Services and National Health Mission (NHM) failed to clear the dues. The RCC paid only Rs 7 crore out of the Rs 27 crore due to KMSCL.

Pharma firms that have supplied the medicines have stopped further supply since the money due to them was not paid. KMSCL demanded the capital to tide over the crisis.

The State introduced 1% cess on liquor in 2021 to provide free generic medicines to patients undergoing treatment in government hospitals. The Beverages Corporation (Bevco) hiked the price of liquor the same year itself, and started collecting the cess.

Bevco has collected more than Rs 400 crore as cess, which has to be handed over to KMSCL. However, Bevco said it had remitted the amount collected as cess to the government.

KMSCL has now sought at least Rs 150 crore to use as capital for the coming years.