Beer Faces Unfair Tax Blow In Kerala, Say Brewers

Double taxation is badly hurting the beer industry in state

- Rajesh Ravi @ Kochi

The beer industry in Kerala is grappling with a bitter brew of policy ambiguity and double taxation. Since December 2022, when the state government scrapped turnover tax (TOT) on local manufacturing units—replacing it with a 4% sales tax hike and a 1% increase in Kerala State Beverages Corporation (Bevco) margins to maintain revenue neutrality—breweries have been left in limbo.

"Beer has been served a very unfair double blow on turnover tax in Kerala," Vinod Giri, director-general of the Brewers Association of India (BAI), told TNIE.

While TOT was removed after repeated requests by the alcoholic beverage industry, the sales tax was increased by 4% to make up for revenue loss, he said.