The Cochin Chamber of Commerce and Industry has opposed the new liquor policy of the Kerala Government saying that it is a “very short-sighted one which will prove highly detrimental in the long run”.
Besides hitting the travel, tourism and IT sectors hard, the chamber said the policy is set to affect investments, as huge funds have been made across the State to cater to the increasing demands of tourists, both domestic and overseas.
More than one crore tourists visited Kerala last year thereby earning a revenue of Rs 25,000 crore, of which Rs 5,000 crore was in foreign currency.
Considering this, a unilateral ban on liquor without consulting anyone from these sectors is bound to have serious repercussions, the chamber warned.
The Rs 7,000-8,000 crore now being earned by the State Government as taxes could now go to bootleggers. This amount could exceed since the prices of liquor will go up drastically.
The chamber pointed out that there would be a bleak future for the State’s finances and as far as economy is concerned as tax revenues from the sale of alcohol account for 22 per cent of the Government's, income while that of tourism was 25 per cent.
“We are set to witness a situation where in the revenue from liquor will become nil with the implementation of total prohibition and revenue from tourism will also reduce,'' it said.