Seeking to quell the controversy triggered by last week's Budget proposal on low-alcohol liquor, Kerala Chief Minister V.D. Satheesan on Wednesday clarified in the Assembly that the state government had only fixed the tax structure for such beverages and had not yet taken a political decision to permit their sale in the state.
Replying to the Budget debate, Satheesan said the issue would be discussed within the UDF before a final call is taken. If the coalition-led government decides against introducing low-alcohol beverages, they will not be sold in the state. However, if the UDF gives its approval, the tax rates already notified by the state government will come into force.
The clarification comes amid growing criticism from opposition parties and sections within the ruling alliance over the proposal, which had emerged as one of the most debated aspects of the Budget. Having sought to put the controversy to rest, the Chief Minister launched a sharp counterattack on the previous Left government, accusing it of laying the groundwork for the very policy it is now criticising.
Presenting documents in the House, Satheesan said it was the second Pinarayi Vijayan government that had first initiated steps to introduce low-alcohol liquor in Kerala. Within six months of assuming office, the then Excise Minister M.V. Govindan had reportedly asked officials to prepare a definition for low-alcohol beverages.
The previous Left government later amended foreign liquor rules and completed procedures to fix taxes sought by multinational liquor company Bacardi, Satheesan added. The proposal remained unimplemented only because elections intervened. In a pointed attack, Satheesan asked whether the previous Left government had fixed lower taxes on premium foreign liquor brands such as Chivas Regal and Johnnie Walker after receiving favours from the companies.
He also criticised the tax structure adopted by the Left, noting that Foreign Made Foreign Liquor products with 40-60 per cent alcohol content were taxed at just 78 per cent during 2018-19 before being raised to 115 per cent in 2023. At the end the revised budget was passed and the House adjourned sine-die till Monday.