Kerala Finance Bill tax rates on low-alcohol liquor

Notes

• The Kerala Finance (No. 3) Bill, 2026, proposes amendments to the Kerala General Sales Tax Act, 1963, to include a new category for 'low-alcoholic beverages'.
• The proposed tax rates for low-alcoholic beverages are 120% for alcohol strength between 0.5% v/v and 10% v/v, and 175% for strength between 10% v/v and 20% v/v.
• The amendment requires notification in the official gazette to come into force, even after the Bill is passed by the Legislative Assembly.
• The category of 'low-alcoholic beverages' was originally notified by the state government in the 2022-23 liquor policy.
• The legislative process involves the introduction of the Finance Bill in the State Legislative Assembly, followed by subsequent gazette notification for implementation.

Part of a longer story

This is day 3 of 4 in Kerala liquor policy and low-alcohol beverages, which has been running since 23 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

• Kerala liquor policy and low-alcohol beverages Before
• Kerala Finance Bill controversy After
• The whole story 4 entries