Horti wine to extended bar hours: LDF-era decisions pose challenges for UDF's liquor policy
The UDF government faces policy challenges reviewing previous LDF liquor decisions, including high-alcohol wine sales, horti beverages, and extended bar hours, while addressing tax structures and tourism sector opposition.
The UDF government faces policy challenges reviewing previous LDF liquor decisions, including high-alcohol wine sales, horti beverages, and extended bar hours, while addressing tax structures and tourism sector opposition.
The UDF government faces policy challenges reviewing previous LDF liquor decisions, including high-alcohol wine sales, horti beverages, and extended bar hours, while addressing tax structures and tourism sector opposition.
Thiruvananthapuram: The UDF government faces a series of challenges as it drafts its first liquor policy, with several decisions taken by the previous LDF regime now requiring review. These include the sale of high-alcohol-content wine outside three Bevco outlets, low-alcohol beverages, horti wine and liquor, and extended bar operating hours.
The latest controversy concerns permission to sell high-alcohol-content wine outside three Bevco outlets. Although the UDF could withdraw the provision, it would require another amendment to the Foreign Liquor Rules, under which the original decision was implemented.
The LDF government's 2022-23 liquor policy had permitted the sale of beverages containing 0.5% to 20% alcohol. However, it left the tax structure undecided. The UDF subsequently introduced a tax of 120% for beverages containing 0.5% to 10% alcohol and 175% for those with 10% to 20% alcohol, triggering Opposition allegations that large liquor companies were being favoured. While the government retained the tax structure, the new policy is expected to clarify whether these beverages can be sold.
Horti wine, made from agricultural produce, is another pending issue. Although the previous government amended the rules to permit its sale at bakeries and supermarkets, decisions on licence applications were deferred. Further action has since been put on hold amid controversy, leaving the new government to decide the way forward.
The LDF had also permitted cooperative societies to produce and sell horti liquor, containing 20% to 30% alcohol, using agricultural produce. However, its tax structure was not finalised. The previous government had defended the move as beneficial to the cooperative and agricultural sectors.
The UDF is also considering reversing the LDF's decision to extend bar operating hours and allow establishments to stay open beyond midnight by paying an additional fee. The proposal, however, faces opposition from the tourism sector.