India: The state of Kerala announces a 10% cut in beer taxes

A 10 per cent cut in taxes on beer and wine proposed in the fifth annual budget of Kerala for 2010-11 by Minister for finance of the state Dr T.M. Thomas Isaac has left the beer traders and consumers in high spirits, literally, Indian Wine communicated on May, 6.

As a result, the breweries all over the country plan to rush to Kerala to launch their brands of beer and dominate the market in a hope that the sale of beer are likely to shoot up. Undoubtedly, the firm that is likely to be greatly benefitted by this is Vijay Mallya’s United Breweries. Brands such as Kingfisher Strong, Kingfisher Lager, Zingaro, Sand Piper, London Pilsner Strong, Kalyani Strong are already favourites among consumers of Kerala.

A spokesperson of Beverage Corporation reported that of the 8.36 lakh cases of beer that were sold last month, 6.6 lakh cases were of United Breweries. In the year 2009, 171.17 lakh of liquor cases were sold out at the outlets of Beverage Corporation alone.

About 43 per cent of this was beer alone, it is reported.

07 May, 2010