Pathanamthitta: A temporary closure of bars in Kerala has not had any bearing on the state government's tax revenue from alcohol sales. The state government has earned as much as Rs 45,146 crore from taxes on alcohol and tobacco in the last five years.
Though studies have shown that smoking is on the wane, the government has managed to avoid a dent in its revenue by increasing taxes on cigarettes and other tobacco products. Tobacco products are taxed at 28 per cent rate in Kerala, apart from a cess of 5 per cent.
The tax rate on alcoholic beverages with a price tag of less than Rs 400 has been increased to 200 per cent from 125 per cent in the previous year. The tax rate on costlier products has been increased to 210 per cent from 135 per cent.
The increase encompasses the previous surcharge and various cess (5 per cent for treating persons who have fallen ill due to alcoholism and to rehabilitate workers who lost their livelihood due to the ban on country liquor, 10 per cent for social security and 1 per cent for health.)
The government has raised Rs 1,052.18 crore for the treatment of alcoholics in the past four years yet it has not spent even half the amount. The excise department even tapped into the fund to organise a football match to create awareness on alcoholism.
