Tax sops for low-alcohol drinks dubious: Pinarayi

Kerala political scene is buzzing after the United Democratic Front (UDF) government, led by Chief Minister V.D. Satheesan, proposed a dramatic slash in sales tax for low-alcohol beverages in its recent budget, reducing the rate from 251% to 120% for drinks up to 10% alcohol content. This move has drawn sharp criticism from Leader of Opposition Pinarayi Vijayan, who described the decision as 'dubious' and 'highly suspicious,' alleging it prioritizes corporate liquor interests over public welfare. The opposition Communist Party of India (Marxist) (CPI(M)), a key component of the Left Democratic Front (LDF), claims this tax cut will significantly increase alcohol consumption, especially among younger generations, and could lead to an estimated revenue loss of Rs 600 crore for the state. They argue that the previous LDF government, under Pinarayi Vijayan, deliberately avoided such tax reductions for spirit-based low-alcohol drinks to discourage consumption, focusing instead on fruit-based alternatives to support farmers. However, Excise Minister M. Liju countered that the LDF government itself had amended the Abkari Act in 2023 to classify low-alcohol beverages and allowed their manufacture, but never finalized the taxation. As the political storm brews, with accusations of a 'liquor lobby' influencing policy and calls for the Chief Minister to clarify the rationale, the UDF government defends the budget proposal as a mere 'financial exercise' rather than a new liquor policy. The debate highlights Kerala long-standing struggle to balance excise revenue needs with social concerns about alcohol consumption. All eyes are now on how the government will address these corruption allegations and potential social repercussions as the budget proposals move forward, and whether it will review a decision that has already become a flashpoint.