Thiruvananthapuram, June 28: The Kerala government has remained steadfast on its controversial proposal to reduce taxes on low-alcohol beverages, despite growing opposition. This provision has been included in the draft Finance Bill, raising the likelihood of intense political confrontations 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 being launched in the market.
This proposal comes at a time when the ruling coalition’s major ally, the Indian Union Muslim League (IUML), has openly opposed it. Amid ongoing differences within the coalition, Chief Minister V.D. Satheesan plans to meet with allied parties in the coming days to seek consensus.
Government sources indicate that there are currently no plans for any other changes in the tax system aside from the provisions included in the Finance Bill.
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 demanded that the government withdraw the tax concession proposal and remove the relevant provisions before presenting the bill in the assembly, arguing that this move contradicts the Congress’s long-standing policy of limiting alcohol availability.
Opposition parties, religious organizations, and groups advocating for alcohol prohibition have also criticized the government’s proposal. They allege that reducing taxes on low-alcohol beverages undermines the state’s declared policy of discouraging alcohol consumption.
Nonetheless, the government asserts that this step is solely aimed at rationalizing the tax framework 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 now escalated into a significant controversy in state politics. It is expected to deepen divisions within the UDF, while providing the opposition with a new political issue to challenge the government.
Deependra Singh Chundawat is a Senior Sub-Editor at Udaipur Kiran, specializing in a wide range of technology topics including mobile phones, applications, gaming, PCs, and wearables. Along with covering the latest tech news, he also creates engaging web stories. Passionate about emerging technologies, he stays up to date with the newest trends and enjoys reading and writing about the latest mobile launches and digital innovations.