THIRUVANANTHAPURAM: The liquor manufacturing companies in Kerala have agreed to resume the supply following Minister MB Rajesh’s assurance to consider the demand to waive the sales tax (13%) on alcohol produced in the state. The companies have put forward such a demand to avoid losses due to surging spirit price. As a result, the liquor shortage in the state will be solved. Locked distilleries will resume production as usual from today.
Liquor companies have applied for permit to supply 30 per cent of the cases manufactured in August. Five lakh cases of liquor will reach the warehouse godowns within a week. The Beverages Corporation has not proposed that companies outside Kerala should pay the import fee.
Distilleries in Kerala supply about 80 percent of the liquor required by Bevco. The rest are supplied by outside companies. With distilleries shut and liquor companies halting supply, the state suffered from liquor shortage for a week.
After observing some discrepancies in the reports submitted by the finance and excise departments to the government to avoid sales tax, Chief Secretary Dr VP Joy was instructed by the last cabinet meeting to inspect this in detail. The report may be submitted in the next cabinet meeting. The final decision will be taken after this.