THIRUVANANTHAPURAM: A decision on increasing the tax on liquor will be taken in the Cabinet meeting on Wednesday. According to reports, tax of costly liquor will be hiked by 35 pc and price of low-priced liquor will be hiked by 10 pc. In effect, the price of a bottle of liquor will rise by up to Rs 50.

The aim of increasing the tax is to increase the income of the State. Currently, Kerala is one of the states that levy highest tax on liquor.

In states like Delhi and Uttar Pradesh, where sale of liquor was resumed following the relaxation of lockdown restriction, the tax of liquor had been hiked.

Kerala will also be increasing the tax in accordance with the hike in these states. The closure of bars and liquor shops had badly impacted the income of the State.

The government started finding it difficult to pay out even salaries and pensions. It was under this circumstances that the finance department came up with the suggestion to increase the liquor tax.