THIRUVANANTHAPURAM: The Opposition UDF has alleged corruption in the LDF Government's decision to allow tax sops to Foreign Made Foreign Liquor (FMFL) brands.
Opposition leader Ramesh Chennithala said that a detailed investigation should be ordered into the scam. He also said that there was no logic in the LDF's stand that FMFL was allowed in the state to curb black marketing. "If that is the justification, why don't the government legalise sale of banned drugs also to curb its illegal sale," Mr. Chennithala said.
Congress leader and former Excise minister Thiruvanchoor Radhakrishnan alleged that FMFL were given concession in excise duty, warehousing margin, retail margin and sale tax. While excise duty is Rs. 1,600 per case of IMFL, it is Rs. 594 per case for FMFL. Warehouse margin is 8 percent for IMFL and only 5 percent for FMFL.
Retail margin is 20 percent for IMFL and only 3 percent for FMFL. Sales tax for IMFL is 210 percent, but only 78 percent for FMFL, said Mr. Thiruvanchoor.
The Federation of Alcohol Beverage Producers India had earlier strongly protested against the tax concessions being given to FMFL. They feared that with the tax sops, FMFL will hit the market at low prices and it would affect sales of premium IMFL brands.
The government's justification was that the sops were offered to IMFL as a promotion to the new entrants to the market.
But the opposition alleged that the LDF government was in a way promoting liquor sale, which was a contradiction to their stand of promoting abstinence.
