Extra 5% cess on IMFL levied in Kerala

Funds will be utilised for rehabilitation of workers of bars and Beverages Corporation outlets

Following the Kerala government’s decision to head for prohibition, state Chief Minister Oommen Chandy on Friday said an additional five per cent cess will be levied on all Indian Made Foreign Liquor (IMFL) brands. And the money raised will be utilised for rehabilitation of workers of bars and Beverages Corporation outlets and for a campaign against consumption of alcohol.

Chandy said all the 312 bars, functioning at present, will be closed in this calendar year. There are no legal constraints in this, as these establishments were given licences on a temporary basis. The licence fee paid by the licensees will be returned. This comes to the tune of Rs 45 crore. The new policy aims at making Kerala a liquor-free state by October 2, 2023.

A high level meeting at Thiruvananthapuram on Friday discussed the modalities of implementing the new liquor policy accepted by the United Democratic Front on Thursday. The government will set up a fund — Kerala Alcohol Education, Research, Rehabilitation and Compensation Fund — to protect and rehabilitate the employees of bars and Beverages Corporation outlets.

The chief minister said bar employees will be given financial aid and bank loans for self employment. Women employees, engaged in putting stickers on liquor bottles will also be rehabilitated. The corporation has 338 outlets and Consumerfed runs 46 outlets across the state, and 10 per cent of the outlets of each company will be closed every year. The chief minister said this process will commence from October 2 this year.

One per cent of the total revenue of Beverages Corporation will be set aside each year for the new fund. Donations from corporate houses, institutions and individuals will also go to the fund.

Arranging awareness campaigns against the liquor consumption, collecting data on liquor consumption and providing compensation to those whose lives have been shattered due to excessive consumption of alcohol are the main aims of the fund.

Chandy announced on Friday that 39 outlets will be closed this year, and observing of ‘dry day’ on Sundays will commence from October 2.

Meanwhile, All Kerala Bar Association has decided to challenge the government decision in the high court. Biju Ramesh, president of the association, said roughly 2.5 lakh people will become un-employed and the state exchequer will loose at least Rs 10,000 crore every year when prohibition comes into force.