No decision yet on low-alcohol beverages; UDF will take final call: Kerala CM VD Satheesan

Thiruvananthapuram: UDF govt has not taken a final decision on allowing the sale of low-alcohol beverages in the state and will formulate its liquor policy only after consultations within the coalition, chief minister V D Satheesan told the assembly on Wednesday amid growing criticism of the move from within UDF and opposition.Replying to the budget debate, Satheesan clarified that govt only approved a tax structure for low-alcohol beverages and that a political decision on permitting their sale would be taken collectively by the Congress-led alliance. If the coalition decides against the proposal, it will not be implemented, he said.The CM also said govt did not propose to reduce taxes, as alleged. “Instead, it fixed a 175% tax rate for beverages containing between 10 and 20% alcohol, one of the highest such rates among Indian states,” he said.The CM sought to shift responsibility for the policy to the previous LDF government, claiming the move to introduce low-alcohol beverages was initiated during its tenure. He rejected allegations linking the present govt to a liquor major, claiming that applications seeking permission for such products were first considered under the previous administration led by Pinarayi Vijayan. On Wednesday, Vijayan, the leader of the opposition, alleged that the 131% reduction in tax on low-alcohol beverages was aimed at benefiting the liquor manufacturer in Karnataka.

Satheesan said the initiative to define low-alcohol beverages was launched within six months of the second Pinarayi govt assuming office and that then excise minister M V Govindan had directed officials to prepare a note on the subject. He further alleged that LDF govt amended the Foreign Liquor Rules and completed procedures for fixing taxes on such products following a request from the liquor manufacturer at the centre of the row, but refrained from implementing the proposal because of the assembly elections.Accusing LDF of expanding liquor availability in the state, Satheesan said there were only 28 bars in Kerala when the Left came to power in 2016, but that the number has since crossed 900. He sarcastically remarked that those who had “flooded Kerala with liquor” were now advising govt that alcohol was harmful. “When you ask how much was received, it is only natural to ask how much was paid,” Satheesan said, in an apparent reference to allegations surrounding liquor policy decisions.The CM said the present govt had examined the experience of other states before deciding on the higher tax rate for low-alcohol beverages. He noted that the previous govt fixed a 78% tax on foreign-made foreign liquor with an alcohol content of 40% to 60% in 2018-19, which was later increased to 115% in 2023. In a swipe at the opposition, he asked whether the earlier tax rate had been fixed after accepting favours from premium liquor brands.