The Kerala Cabinet on Wednesday approved a proposal to increase the sales tax on liquor. The proposed increase is 10 per cent on beer and wine and 35 per cent on all other categories of liquor.
The government will recommend the Governor to issue an ordinance to increase the sales tax on liquor in order to find a new source of income for the state during the lockdown.
"Due to the lockdown, all the major revenue sources of the state have been affected. There was a huge fall in revenues. In this case, an attempt is being made to find a new source of income," said Chief Minister's office in a statement.
The Cabinet has also decided to formulate an expert committee to submit proposals to reduce the expenditure of government departments, corporations and boards in the face of severe economic hardship in the state. Centre for Development Studies (CDS) Chairperson Sunil M will head the panel.
The Cabinet has also approved a special package for the revival of Micro, Small and Medium Enterprises in the state. The total assistance of Rs 3,434 crore will be provided to industries through this package. This relief package is implemented in the context of COVID-19.
( With inputs from ANI )