A political controversy has arisen in Kerala following the Budget proposal to implement a lower tax structure for low-alcohol beverages. Former Kerala Excise Minister M.B. Rajesh criticized the move, while present Excise Minister M. Liju refuted claims of a new liquor policy. Minister Liju clarified that the Budget announcement was solely a financial exercise related to the taxation of wine and liquor products and not indicative of a new policy.
The disagreement stemmed from Rajesh’s concerns that the tax reduction on low-strength alcoholic beverages could lead to the widespread availability of ready-to-drink alcoholic products in Kerala, primarily benefiting corporate liquor companies. He estimated a potential loss of around Rs 600 crore to the state exchequer due to the tax concession and questioned the reasoning behind the decision. Rajesh alleged that the move was influenced by liquor industry interests and urged the state government to justify its actions.
Rajesh further claimed that the decision would promote the large-scale sale of low-alcohol beverages through Bevco outlets, making such products as easily accessible as soft drinks. He also accused a Karnataka-based liquor lobby of being involved in the decision-making process and demanded clarification from Chief Minister Satheesan regarding the alleged influence of the liquor industry. The political debate has reignited discussions on the liquor landscape during the previous LDF government’s tenure, highlighting the significant increase in the number of bar hotels over the years.
