Political row brews in Kerala over lowering booze tax, CPI(M) cites addiction fears
The UDF government’s decision to reduce taxes on low-alcohol beverages has drawn sharp criticism from the opposition CPI(M), which has alleged that the move will
The UDF government’s decision to reduce taxes on low-alcohol beverages has drawn sharp criticism from the opposition CPI(M), which has alleged that the move will increase liquor consumption, benefit liquor companies and harm society, especially the younger generation. Leader of Opposition Pinarayi Vijayan, CPI(M) state secretary MV Govindan, former finance minister KN Balagopal and former excise minister MB Rajesh all attacked the proposal, while State Home Minister Ramesh Chennithala defended it, saying the government remained committed to gradually reducing alcohol consumption and availability in the state. Read Full Story In a statement, Vijayan termed the decision to cut taxes on low-alcohol beverages as “highly suspicious” and said there was widespread criticism over allegations that the commercial interests of liquor companies were behind the move. He said that while liquor produced from spirits currently attracted a tax of 251 per cent in the state, the budget had proposed reducing it to 120 per cent for beverages containing up to 10 per cent alcohol, which would amount to a concession of more than half. Vijayan said higher taxes on alcohol had traditionally been used not only to raise revenue but also to discourage consumption.
He alleged that this was the first time the government had proposed such a steep cut in liquor prices. “When cheaper alcohol becomes widely available in the market, consumption will increase sharply,” he said, adding that even if these products were sold as low-alcohol beverages, the proposal would lead to greater alcohol use and could eventually push consumers towards stronger liquor. Calling the policy misguided, Vijayan said it could mislead the younger generation and push society into a worrying situation. He also asked why the government had chosen to grant relief only for alcohol while failing to address people’s urgent livelihood issues. “Is reducing the price of alcohol the priority of this government? What benefit will it bring to society other than harmful consequences,” he asked. He also said that even minor changes in excise policy had attracted criticism in the past, with religious and community organisations repeatedly warning that such steps could increase alcohol consumption. Anti-liquor organisations had raised similar concerns, he said. Vijayan called for strong resistance across political lines against what he described as proposals that would expand alcohol consumption, and urged society to protect future generations from alcohol and drug addiction.
The BriefWire