New Tax Slabs For Low-Alcohol Beverages Announced In Keralam

Kerala will now introduce a separate sales tax structure for low-alcohol beverages. This move has been introduced to promote the marketing of lower-strength alcoholic drinks in the state. Chief Minister V D Satheesan made this announcement in the 2026-27 Budget, stating that the new tax rates are being introduced in following amendments to the Foreign Liquor Rules under the 2022-23 Abkari framework.

Keralam Announces New Tax Slabs For Low-Alcohol Beverages

The state of Keralam has announced a new tax structure for low-alcohol beverages, introducing separate sales tax slabs for drinks that contain up to 20% alcohol.

Keralam’s Chief Minister V D Satheesan, while announcing this new measure in the 2026-27 Budget, stated that the new tax rates are being brought in the following amendments made to the Foreign Liquor Rules falling in the 2022-23 Abkari framework.

The government classified alcoholic beverages containing 0.5% to 20% alcohol by volume (ABV) as low alcoholic beverages. However, this excludes beer and wine. The new tax structure is aimed at making the taxation of products falling under this category more transparent and convenient.

The new tax rates will introduce up to 120% sales tax for alcoholic beverages containing 0.5% to 10% ABV. For alcoholic beverages containing an ABV between 10% and 20%, there will be 175% sales tax.

Also Read: Can Jackfruit Make You Tipsy? Kerala Bus Drivers Fail Breathalyzer Tests On Jackfruit!

Keralam 2026-27 Budget To Strengthen Anti-Drug Efforts

According to the 2026-27 Keralam Budget, the revised rates will be notified under the Kerala General Sales Tax Act. This is to create a distinct, transparent taxation framework for low-alcohol products.

The Budget also outlined new measures aimed at strengthening the state’s anti-drug enforcement efforts. CM Satheesan also said all excise offices across Keralam will be equipped with drug-detection kits capable of identifying a wide range of narcotic substances, including new-age drugs.

In addition to equipping excise offices with drug-detection kits, the government will expand Operation Thoofan. This is Keralam Excise Department’s enforcement drive aimed at curbing drug trafficking and substance abuse.

Also Read: Kerala Increases Legal Alcohol Limit in Toddy to 8.98%

Summing Up

Keralam has introduced new tax slabs for low-alcohol beverages. Chief Minister V D Satheesan has made this announcement in the 2026-27 Budget. What do you think of this move?

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