Liquor tax: When you pay Rs 1000 for your bottle, Rs 750 goes to govt's pocket

Kerala's treasury has received ₹1,225.70 crore from bar license fees, up to March 31, 2025
Liquor dry days
Liquor (Pic: Canva)
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Kerala’s liquor sales in the financial year 2024-25 amounted to ₹19,561 crore, with the state generating ₹14,822 crore in taxes. This data, revealed through an RTI request filed by activist MK Haridas, sheds light on the scale of the state's liquor industry and its crucial role in the state's economy.

The figures highlight the contribution of the Kerala State Beverages Corporation (BEVCO), which manages a large portion of the liquor sales in the state. Along with locally produced liquor, Kerala also imported alcoholic beverages worth ₹763.07 crore from outside the state, adding to the overall revenue.

Bar licence contribute substantial revenue

The revenue from bar licence fees has also been a notable source of income for the state. Since the second Pinarayi Vijayan-led government took office, Kerala's treasury has received ₹1,225.70 crore from bar licence fees, up to March 31, 2025.

Currently, the licence fee for bars stands at ₹35 lakh. Among the districts, Ernakulam has emerged as the leader in bar licence revenue, contributing ₹304.07 crore, followed by Thrissur with ₹156.15 crore and Thiruvananthapuram at ₹134.43 crore.

The role of clubs and IMFL units

Apart from bars, Kerala is also home to 45 clubs that operate with valid bar licenses, contributing ₹41.85 crore in license fees between 2021-22 and 2024-25. Additionally, the state boasts 19 Indian Made Foreign Liquor (IMFL) manufacturing units, further cementing the state's strong position in the liquor market.

The numbers also highlight the extensive network of alcohol sales in the state, which continues to be a significant revenue stream despite ongoing debates over the role of liquor in Kerala’s economy.

A vital revenue source

The state's liquor industry plays a crucial role in Kerala’s economic structure, with a significant portion of tax revenue directly linked to alcohol sales. As discussions about the socio-economic impacts of this sector continue, these figures show just how vital liquor-related revenues are to Kerala's financial health.

The overall statistics point to a well-established liquor industry that continues to generate substantial income for Kerala, though it also raises questions about the broader impact on society and the need for a balanced approach to alcohol regulation.

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