The Kerala Assembly approved the Finance Bill, which included changes to the tax structure for low-alcohol beverages, following a heated discussion that led to the Opposition’s boycott. The revised tax system for low-alcohol drinks was a focal point of the debate, with Chief Minister V.D. Satheesan and Opposition Leader Pinarayi Vijayan clashing over the legislative process and liquor policies.
During the debate, Pinarayi accused the government of clandestinely altering the tax on low-alcohol beverages within the Finance Bill instead of openly discussing it during the Budget session. In response, Satheesan defended the tax adjustment, emphasizing that it was announced in the Budget speech and is a standard inclusion in the Finance Bill.
Satheesan further criticized the Opposition and others for trying to undermine the Budget through political tactics and affirmed that his administration would stand by its policy decisions despite external pressure. He refuted claims that the revised policy favored liquor companies by presenting evidence of past government initiatives to promote lower-alcohol drinks as a means to reduce reliance on hard liquor.
The Chief Minister clarified that the new tax structure created a separate category for beverages with alcohol content between 0.5 and 20 percent, subject to taxes ranging from 120 to 175 percent, significantly higher than rates in neighboring states. He highlighted the global trend of transitioning from hard liquor to lower-alcohol beverages and emphasized that the government’s monopoly over procurement and distribution through the Kerala State Beverages Corporation ensured strict control over sales.
