Opposition Targets Budget Proposal on Low-Alcohol Beverages
Leader of the Opposition in the Kerala Assembly, Pinarayi Vijayan, has accused the UDF government of introducing a tax concession on low-alcohol, spirit-based beverages to benefit private liquor companies. In a strongly worded statement, Vijayan alleged that the proposal in the government’s first budget would result in a substantial loss of revenue for the state while providing undue advantage to liquor manufacturers.
According to Vijayan, the proposal would reduce the tax on low-alcohol liquor from over 251 per cent to 120 per cent. He claimed the move would lower retail prices, encourage alcohol consumption, and run contrary to the state’s public health objectives.
Alleges Decision Was Fast-Tracked
The CPI(M) leader further alleged that a file relating to the tax proposal, which had remained pending since 2023 during the previous LDF government, was revived and processed with unusual speed by the present administration. He claimed the file moved through the Secretariat and reached the Chief Minister’s Office within hours before receiving approval in record time.
Describing the decision as a “planned move” rather than a routine administrative exercise, Vijayan questioned the urgency behind the proposal and demanded greater transparency in the government’s decision-making process.
Questions Policy Direction
Vijayan also questioned why the government announced the tax concession before taking a final decision on permitting the sale of such beverages in Kerala. He pointed out that even the Excise Department had indicated that the issue would be considered only after the formulation of a new liquor policy.
The Opposition leader argued that the previous LDF government had explored promoting fruit-based low-alcohol beverages made from products such as jackfruit and cashew apples to support farmers and small-scale industries. In contrast, he alleged that the current proposal favours spirit-based ready-to-drink alcoholic beverages produced by large private companies.
Political Row Intensifies
Vijayan also criticised what he described as the government’s failure to follow the usual consultative process involving relevant departments and the Cabinet before introducing the proposal. Referring to the UDF’s election campaign, he alleged that the coalition had abandoned its promise of collective governance and instead aligned itself with corporate interests.
The UDF government has maintained that discussions on the broader liquor policy will continue before any final implementation. However, the proposed tax concession has triggered a fresh political confrontation in Kerala, with the Opposition demanding that the government withdraw the measure and clarify the rationale behind the budget proposal.
