Vijayan slams UDF over tax cut, accuses govt of favouring liquor company
Leader of the Opposition in the Kerala Assembly, Pinarayi Vijayan, has accused the UDF government of using its first budget to favour a liquor company
Leader of the Opposition in the Kerala Assembly, Pinarayi Vijayan, has accused the UDF government of using its first budget to favour a liquor company by proposing a sharp cut in taxes on low-alcohol, spirit-based beverages. He alleged that the move would cost the state hundreds of crores of rupees while benefiting private liquor companies. In a newspaper article on Wednesday, Vijayan said the proposal was a "planned move" and not a routine administrative decision. Read Full Story He claimed the tax on low-alcohol liquor had been reduced from more than 251 per cent to 120 per cent, and said this would lower prices and increase alcohol consumption instead of protecting public health.
Vijayan claimed the government revived a file that had been pending since 2023 under the previous LDF administration. He alleged that the file moved through the Secretariat at an unusually fast pace, reached the Chief Minister's Office within hours and was cleared in record time. He further alleged that the concession was meant to benefit liquor companies from neighbouring Karnataka rather than farmers or consumers in Kerala. He also questioned why the government announced a tax concession before deciding whether such products would be allowed for sale in the state, saying even the Excise Department had indicated that a final decision would be taken only under the proposed new liquor policy.
Vijayan said the LDF had earlier considered encouraging low-alcohol beverages made from fruits such as jackfruit and cashew apples to support farmers and small-scale industries. He claimed the present proposal instead favours spirit-based ready-to-drink alcoholic beverages. He also criticised the government's handling of the issue, alleging that the proposal was pushed through without the usual consultative process involving the departments concerned and the Cabinet. Referring to the UDF's election pitch, Vijayan alleged that the "Team UDF" concept presented to the people is no longer heard of. "Today, liquor companies and monopoly interests seeking to take control of the coastal region have become the new allies in Team UDF.
This is a clear indication of the direction in which the UDF government is moving. Neither the chief minister nor the Cabinet can evade responsibility in this matter," he said, summing up his criticism of the government's tax proposal. Ends
