Thiruvananthapuram: Kerala government plans to distill liquor locally rather than rely on supply from manufacturers from outside the state.
Finance Minister K N Balagopal, in an interview given to Manorama News ahead of the state budget, said the government is considering even exporting local liquor brands, and that they are currently studying the legal implications of the same. He also said the state was looking to produce stronger liquor, i.e., one with higher alcohol content, and that changes will be made in Excise regulations accordingly.
Expect more taxes
Balagopal, who is busy preparing for the budget presentation on Friday, hinted that there will be an increase in taxes this time to pull the state up from its economic slump in the wake of COVID-19 pandemic.
When asked whether the state would increase liquor tax, the minister said it would not be possible beyond a point. “Besides increasing revenue, the state will also cut down on unnecessary expenses,” he said.
Recently it was reported that several Kerala-based liquor companies had opened production units in neighbouring States. Such units are mostly coming up in areas bordering Kerala. As a result, Kerala is losing out both investment and employment opportunities besides revenue.
Focus on manufacturing sector
In the budget outlays the government's focus will be on the manufacturing sector. The state will help the private sector establish business parks here, Balagopal added.
The minister was not forthcoming when asked whether the government would keep its promise on withdrawing contributory pension.
