Kerala liquor tax row: CPI(M) accuses CM Satheesan of making ‘incorrect’ statements, seeks clarification

Published 25 June 2026 · politics

CPI(M) leader and former Excise Minister M.B. Rajesh on Thursday (June 25, 2026) accused Kerala Chief Minister V.D. Satheesan of making “factually incorrect” statements to

CPI(M) leader and former Excise Minister M.B. Rajesh on Thursday (June 25, 2026) accused Kerala Chief Minister V.D. Satheesan of making “factually incorrect” statements to deflect criticism over the Revised Budget proposal to reduce tax on low-alcohol beverages. Addressing a press conference in Palakkad, Mr. Rajesh rejected Mr. Satheesan’s claim in the State Assembly that the proposal had originated during the previous LDF government’s tenure when current CPI (M) State secretary M V Govindan held the Excise portfolio. “It is factually incorrect and baseless. The file he referred to only dealt with redefining low-alcohol beverages. There was no proposal to reduce tax. It was part of the LDF government’s liquor policy,” Mr. Rajesh said. He said the 2022-23 liquor policy proposed categorising alcoholic beverages into three groups – wine, liquor and low-alcohol – and that the policy had been implemented transparently after Cabinet approval and amendments to the rules. “There was no decision by the LDF government to reduce tax on low-alcohol beverages,” he said.

Rajesh demanded that the Chief Minister withdraw his statement that the previous LDF government had planned such a tax reduction but could not implement it because of the Assembly elections. “I don’t think he will withdraw it because he has no such habit,” Mr. Rajesh alleged. The LDF government had only permitted the sale of no-alcohol beverages in 2023 and had taken no further steps regarding tax concessions for low-alcohol beverages during its tenure, he said. “He (the CM) should clarify what exactly the previous LDF government had done to justify his claim,” Mr. Rajesh demanded. Alleging that the present government had acted “secretly”, Mr. Rajesh claimed the file relating to the tax proposal reached Mr. Satheesan on May 21 and remained with him for 24 days before being cleared on June 14. “Wasn’t there enough time to discuss it within the Congress and the UDF? He ensured that nobody came to know about it.

What was the interest behind it,” he asked, adding that the file movement history could be verified online. He alleged that even the Congress leadership and UDF constituents were unaware of the proposal until the Opposition raised the issue. “If the Opposition had not exposed it, even leaders in the Congress and the UDF would not have known about the move,” Mr. Rajesh claimed. Further, he dismissed the UDF’s allegation that the previous Left government had allowed a large number of new bars to open in the State. On the number of bars He said there were 748 bars in Kerala during the Oommen Chandy-led UDF government, following which all but 28 five-star hotel bars lost their licences after amendments to the Abkari Act amid the bar bribery controversy. According to Mr. Rajesh, there were 813 beer and wine parlours and 306 BEVCO liquor outlets when the UDF government demitted office in 2016. He said hotels that had beer and wine parlour licences and later obtained three-star classification were subsequently granted bar licences during the LDF government’s tenure.