Thiruvananthapuram, June 27 (IANS) Ignoring growing opposition from various quarters, Chief Minister V.D. Satheesan’s government has formally moved ahead with its controversial proposal to reduce taxes on low-alcohol beverages by incorporating the provision in the draft Finance Bill, setting the stage for what is expected to be one of the biggest political confrontations of the Assembly session.
The draft Bill, officially published on Saturday, will be introduced in the Assembly on July 1. While the proposed legislation reduces taxes on low-alcohol liquor, the government has sought to blunt criticism by asserting that its passage would not automatically permit the sale of new low-alcohol beverages.
Officials said any new product would still require separate approval from the Excise Department before entering the market.
The move comes despite sharp resistance from key UDF ally the Indian Union Muslim League (IUML), which has openly opposed the proposal.
With differences persisting within the coalition, Satheesan is expected to hold consultations with constituent partners in the coming days to build consensus before the policy is implemented.
Government sources maintain that there is no immediate plan to alter the tax regime beyond the provisions incorporated in the Finance Bill.
Congress leaders, including Excise Minister T. Siddique, who had initially expressed reservations over the proposal, now insist that the controversy has, for the moment, been resolved within the party.
However, opposition from within the Congress continues unabated. Senior Congress leader and former KPCC president V.M. Sudheeran has emerged as the government’s sharpest internal critic, demanding that the proposed tax concession be withdrawn and that the relevant provisions be dropped from the Finance Bill before it is taken up in the Assembly.
He has argued that the move is inconsistent with Congress’s long-standing commitment to restricting the availability of liquor.
The proposal has also drawn criticism from the Opposition, religious organisations and anti-liquor campaigners, who contend that lowering taxes on low-alcohol beverages would dilute Kerala’s stated policy of discouraging alcohol consumption.
The government, however, maintains that the measure is intended solely to rationalise the tax structure and does not constitute a change in liquor policy.
With the Finance Bill now set to be debated in the Assembly, the proposed tax cut has evolved into a major political flashpoint, threatening to deepen divisions within the UDF while providing the Opposition with a potent issue both inside and outside the House.
–IANS
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