Thiruvananthapuram, June 28: The Kerala government remains steadfast on its controversial proposal to reduce taxes on low-alcohol beverages, despite increasing opposition. This provision has been included in the draft Finance Bill, raising the likelihood of intense political clashes in the upcoming assembly session.
The officially published draft Finance Bill will be presented in the assembly on July 1. The bill proposes a tax reduction on low-alcohol alcoholic beverages. However, the government clarified that the passage of the bill does not automatically mean that the sale of new low-alcohol beverages will commence.
According to government officials, any new product must receive separate approval from the Excise Department before it can be launched in the market.
This proposal comes at a time when the ruling coalition’s key ally, the Indian Union Muslim League (IUML), has openly opposed it. Amid ongoing differences within the coalition, Chief Minister V.D. Satheesan will attempt to reach consensus with allied parties in the coming days.
Government sources indicate that, aside from the provisions included in the Finance Bill, there are currently no plans for other changes to the tax system.
Congress leaders, including Excise Minister T. Siddique, claim that the internal dispute over this issue has been resolved. However, senior Congress leader and former KPCC president V.M. Sudheeran remains a vocal critic of the decision.
Sudheeran has urged the government to withdraw the tax concession proposal and remove the relevant provisions before presenting the bill in the assembly. He argues that this move contradicts the Congress’s long-standing policy of limiting alcohol availability.
The government’s proposal has also faced criticism from opposition parties, religious organizations, and groups advocating for alcohol prohibition. They argue that reducing taxes on low-alcohol beverages undermines the state’s declared policy to discourage alcohol consumption.
Nevertheless, the government maintains that this step is merely aimed at rationalizing the tax structure and should not be interpreted as a change in the state’s alcohol policy.
With discussions on the Finance Bill set to take place in the assembly, this issue has escalated into a significant controversy in state politics. It is likely to deepen the rifts within the UDF, while providing the opposition with a new political issue to challenge the government.
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