Horti-wine to have the same tax as Indian-made wine, amendment Bill presented in Kerala Assembly

The Kerala General Sales Tax (Amendment) Bill, 2024, which seeks to make the sales tax on Indian-made wine applicable to horti-wine as well, was presented in the Assembly on Tuesday.

Through an October 22 government order, the State government had sanctioned the production of horti-wine from agricultural products available in the State except cereals.

In his 2023-24 Budget speech, Finance Minister K.N. Balagopal had declared that tax structure for Indian-made wine will be made applicable to horti-wine.

Presenting the amendment Bill in the House on Tuesday, Mr. Balagopal said the government supported horti-wine production as a means of value-addition in agriculture and a new income source for farmers.

As per the government decision, horti-wine will be produced from agricultural products available in the State, but excluding cereals. “Kerala has many fruits and a lot of it go to waste. Indian-made wine sold in Kerala are from other States and made from grape,” he said, adding that the State’s tax laws do not cover horti-wine.

Mr. Balagopal added that the State government was not likely to earn much revenue from the tax on horti-wine. The Kerala General Sales Tax (Amendment) Bill, 2024, was referred to the Subject Committee.