Thiruvananthapuram: Even as liquor manufactures and suppliers owe the Kerala Government Rs 267 crore as tax arrears the Finance Department is sitting on a file regarding a one-time settlement scheme aimed at recovering these dues.
It was declared in the new liquor policy in April last year that the arrears would be recovered with a one-time settlement after offering relaxations in the interest and principal amounts. Strangely, no action in this regard has been taken so far even though it is time to declare the liquor policy for the next fiscal year (2023-24).
A file seeking the approval for the one-time settlement scheme is pending with the Finance Department. Out of Rs 267 crore, the principal comes to Rs 60 crore and the rest is the interest and penal interest.
The decision was to implement an amnesty scheme by waiving the interest and giving relaxation by a certain percentage in the principal amount. It was estimated that at least Rs 25 crore could be collected in this way. Even though it is more difficult to write off the arrears than recover them, many districts have followed that path.
The write-off is done with the approval of the Finance Department after reports from the village officer to the Collector are made available to the Excise Department. The arrears were written off in many places owing to some reasons, including political pressure.
Due since 1970!
The arrears on liquor revenue, called abkari, are of the period 1970-2000. These was incurred as contractors on the auction of toddy shops. The arrears piled up as the contractors reported losses or got embroiled in litigation.
‘Liquor-free’ streets in all districts
As part of the anti-liquor campaign, “liquor-free” streets will be established in all districts. Arts, sports, and cultural events will be conducted on a 1-kilometre stretch of selected roads.
The Excise Department recommended that the programmes conducted in Kottayam in the first phase in this regard should be replicated in other districts in the second phase.
Though the anti-liquor campaign went off well in the first phase, its vigour could not be sustained in the second phase that will conclude on January 26.
