THIRUVANANTHAPURAM: The state government is preparing to introduce a comprehensive change in liquor policy to attract more tourists. The main recommendation is that hotels with three-star status should have 30 rooms to get a bar license. Four-star hotels and five-star hotels should have 40 rooms and 50 rooms respectively to get a bar license.
Heritage hotels will not be considered a separate category. The new liquor policy will be implemented in 2023. It will also prevent more bars from coming up with limited facilities. This condition will not be applicable for hotels that have applied for a license after completion of work and those that are in the process of construction. At present, a three-star should have 10 rooms to get a bar license.
All license applications and liquor purchases to bars from warehouses will be made fully online. In this way, delays can be avoided and the process will become more transparent. A new system will be introduced so that bars can pay turnover tax in advance. At present, bars are paying turnover tax after selling liquor. Arrears can be avoided through the new move. 10 per cent compounding will be imposed. In other words, if a bottle of liquor bought for Rs 100 from a warehouse is sold for Rs 180 at a bar, a tax of Rs 18 has to be paid.
License fee not likely to be increased
The government may sympathetically consider the bar owners' demand not to increase the license fee. At present, the license fee is around Rs 30 lakh per annum. The bar owners put forward their demand by citing a slump in business during the pandemic. Excise has recommended raising the fixed percentage of fees in liquor policy. The government will discuss the matter and make a decision. If the recommendation is accepted, the fee may go up to Rs 32 lakh. It will be finalized only after discussing the matter in the Left Front.