Kerala’s former Excise Minister flays UDF for reducing tax on low-alcohol drinks

Former Excise Minister M.B. Rajesh has alleged that the United Democratic Front (UDF) government’s decision to reduce taxes on low-alcohol beverages is aimed at increasing alcohol availability in the State.

Addressing the media here on Saturday, Mr. Rajesh claimed that a Karnataka-based liquor lobby was behind the move and demanded that Chief Minister V.D. Satheesan disclose the amount received in connection with the decision.

He said the previous Left Democratic Front (LDF) government had permitted production of low-alcohol beverages only from fruits and agricultural produce. The UDF government, he alleged, has now allowed production using spirit, a move he said would enable corruption and cause social harm.

Mr. Rajesh said those who earlier spoke strongly against alcohol were now making it more accessible and supporting corporate interests. He claimed that the UDF offered a tax concession the LDF had rejected, resulting in significant revenue loss to the State.

‘To support farmers’

He said that the LDF had earlier allowed production of low-alcohol beverages from fruits and vegetables to support farmers, with tax set at the same rate as wine to create a market for farm produce.

He alleged that the new policy reduced tax on spirit-based beverages, fixing it at 120% for products with up to 10% alcohol content and 175% for those with up to 20%.

According to Mr. Rajesh, a single corporate company had sought the concession, and the policy would help it capture a large market. He described the products as “ready-to-drink” alcoholic beverages available through Kerala State Beverages Corporation outlets. “This will make alcohol more accessible to consumers,” he said.