Kerala approves its new excise policy

Kerala has approved its excise policy for the 2023-24 fiscal, which primarily intends to increase the liquor production in the state.

To encourage the export of IMFL from the state, the government would implement the necessary amendments to the foreign spirits rules in accordance with the approved policy. For this, high brand registration charge and the export fee will be revised in the new excise policy.

The policy calls for initiatives to lower IMFL manufacturing costs, while simultaneously increasing IMFL output in government-owned businesses. The Kerala government will be engaged in drafting the required legislation to produce fruit-based goods with minimal alcohol content.

Additionally, the government would encourage the production of extra neutral alcohol (ENA) within the state. IMFL's manufacturing costs will be reduced as a result of the state's production of ENA.

Under the new excise policy, the cost of a bar licence has gone up by Rs. 5 lakh in Kerala. A new type of temporary licence for restaurants in tourist areas to sell beer and wine solely during peak tourist seasons is also introduced in the liquor policy. Kerala's excise agency will consider issuing a licence for serving alcohol in additional industrial parks similar to the IT parks after consulting with the industries department.

The Kerala government wants to capitalise on the toddy industry and promote it as ‘Kerala Toddy.’ The ability to tap toddy from palms on-site and serve it to tourists will be granted to hotels with three stars or more and to restaurants in popular tourist areas. According to the policy, the production of toddy will be promoted throughout the state via plantation.