Former Kerala Excise minister MB Rajesh slams Kerala tax cut on low-alcohol drinks
Kerala excise minister MB Rajesh on Saturday criticised the UDF government's budget proposal to reduce taxes on low-alcohol beverages, alleging that it would make alcohol
Kerala excise minister MB Rajesh on Saturday criticised the UDF government's budget proposal to reduce taxes on low-alcohol beverages, alleging that it would make alcohol more widely available in the state and mainly help corporate liquor companies. Rajesh said the move would lead to the large-scale sale of ready-to-drink alcoholic beverages in the name of low-alcohol products. He also questioned the basis for the tax concession and claimed it would cause a revenue loss of around Rs 600 crore to the state exchequer. Read Full Story Addressing a press conference, Rajesh alleged that the decision would make low-alcohol beverages easily available across Kerala through Bevco outlets.
"The decision will facilitate the widespread availability of low-alcohol beverages across the state. Products that can be consumed like soft drinks, will become easily accessible through Bevco outlets," he said. He further alleged that the proposal was intended to benefit liquor companies and said the government should explain why the tax relief had been granted. Rajesh also claimed that the decision had been influenced by liquor industry interests. Alleging that a Karnataka-based liquor lobby was behind the decision, Rajesh demanded that Satheesan clarify how much money had been received in connection with it.
"He only has to say how much (money) had been received," Rajesh said, targeting Satheesan. Comparing the proposal with the previous LDF government's policy, Rajesh said the earlier administration had allowed the production of low-alcohol beverages from fruits and vegetables to support farmers and create a market for agricultural produce. He said those products were taxed at rates similar to wine and were meant to benefit the farming sector. According to Rajesh, the new proposal would allow low-alcohol beverages to be made using spirit, making them more attractive commercially for liquor companies.
He alleged that the move would encourage higher alcohol consumption while benefiting a corporate player whose earlier demand for tax concessions had been rejected by the LDF government. The remarks came after the UDF government proposed cutting taxes on low-alcohol beverages as part of its wider revenue and industry policy measures, with Rajesh alleging that the decision would widen alcohol access, reduce state revenue and favour liquor companies. Ends
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