The Kerala government, led by Chief Minister V.D. Satheesan, has proceeded with its plan to lower taxes on low-alcohol drinks despite facing resistance. The proposal is included in the draft Finance Bill, sparking anticipation of a significant political clash during the upcoming Assembly session.
The draft Bill, made public on Saturday, is scheduled for introduction in the Assembly on July 1. While the legislation aims to reduce taxes on low-alcohol beverages, the government clarifies that this change does not automatically authorize the sale of new low-alcohol drinks. Any new product would still need separate approval from the Excise Department before being sold.
Despite objections, particularly from the Indian Union Muslim League (IUML), a key ally of the UDF coalition, the government is moving forward. Chief Minister Satheesan is expected to engage in discussions with coalition partners to seek consensus before implementing the policy. The government asserts that there are no immediate plans to further modify the tax structure beyond what is outlined in the Finance Bill.
Criticism persists within the Congress party, with some members, including former KPCC president V.M. Sudheeran, opposing the proposed tax reduction. Sudheeran argues that the move contradicts the Congress’s historical stance on limiting alcohol availability. The opposition, along with religious groups and anti-liquor activists, argues that reducing taxes on low-alcohol beverages goes against Kerala’s efforts to discourage alcohol consumption.
The government defends the tax reduction as a measure to streamline the tax system, emphasizing that it does not signify a shift in liquor policy. As the Finance Bill heads for debate in the Assembly, the proposed tax cut has become a major point of contention, potentially widening rifts within the UDF and offering the Opposition a significant issue to address both inside and outside the Assembly.
