Thiruvananthapuram, October 1, 2026: The Kerala government has initiated discussions on potential excise policy reforms following a stakeholder meeting with representatives of leading alcoholic beverage industry associations on September 30, 2026. The meeting, chaired by Kerala Excise Minister M. Liju, focused on addressing industry concerns related to the state’s excise regime, taxation, the Kerala State Beverages Corporation (KSBC) and Ease of Doing Business (EODB).
Representatives of the Confederation of Indian Alcoholic Beverage Companies (CIABC), International Spirits and Wines Association of India (ISWAI), All India Brewers’ Association (AIBA) and Brewers Association of India (BAI) presented their concerns and recommendations to the minister and senior excise officials. The discussions covered regulatory challenges, revenue enhancement, consumer affordability and opportunities to support tourism and hospitality through policy changes.
AIBA Proposes Changes to Beer Taxation and Distribution
Mr Gopal Joshi, Secretary General of AIBA, highlighted key challenges facing India’s brewing industry in Kerala. One of the major issues was the Turnover Tax (TOT) imposed on beer manufactured in the state, while similar taxation is not applied to domestically manufactured Indian Made Foreign Liquor (IMFL). AIBA called for a review of this differential tax treatment.
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The association also presented Karnataka’s Alcohol-in-Beverage (AIB) model, suggesting that its adoption could increase state excise revenue while helping reduce the maximum retail price (MRP) of beer. AIBA further proposed expanding Kerala’s existing 332 off-retail beer outlets to improve consumer access and serve tourists across the state. The introduction of draught beer was another recommendation aimed at supporting tourism, hotels and hospitality businesses.
Kerala to Study Uttar Pradesh Excise Policies
During the meeting, Excise Minister M. Liju expressed interest in Uttar Pradesh’s Export Promotion Policy and Vintners Policy. He directed the Excise Department to study both policies and prepare a report for consideration by the Kerala Cabinet, potentially enabling the state to evaluate policy measures implemented elsewhere.
KSBC Reforms Under Consideration
The meeting also addressed operational concerns involving KSBC. The minister assured stakeholders that the government would consider establishing a reform committee to examine the corporation’s functioning and identify measures to improve the business environment.
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