Muslim League's Kerala dilemma: Opposes liquor, but backs tax cut on mild drinks

Caught between its long-standing opposition to alcohol and its role as a key partner in Kerala's ruling coalition, the Indian Union Muslim League (IUML) is seeking to strike a balance over the government's controversial proposal to cut taxes on low-alcohol beverages. While reiterating that it opposes the sale and consumption of liquor in all forms, the party said it would abide by the cabinet's collective decision and would not allow the issue to disrupt alliance unity.

Kerala Local Self Government Minister KM Shaji on Thursday said his party, IUML, was opposed to the sale and consumption of all forms of liquor, but would stand by the Kerala cabinet's decision to reduce tax on low-alcohol beverages. He said the party had made its position clear, expressed its dissent, and would not create issues within the ruling alliance over the matter.

At a press conference in New Delhi, Shaji said the IUML was against liquor consumption regardless of alcohol content, but would support the cabinet's collective decision. He also spoke on the appointment of the new State Election Commissioner, the stray dog issue, and waste management in the state.

IUML is the second-largest partner of the ruling Congress-led United Democratic Front (UDF).

Responding to a question on the budget proposal, Shaji said the party's stand had already been stated by IUML state president, Sayyid Sadiq Ali Shihab Thangal.

"We are not supportive of it. That is why Thangal has expressed his opinion. But we will stand by the cabinet's decision. Whether it is a low- or high-alcohol beverage, we are against liquor consumption," he said.

Shaji said the IUML had expressed its disagreement but would back the cabinet's collective view. "We will not create issues within the alliance over this," he said. He added that the IUML had secured votes from all sections of society and respected the coalition government's mandate.

"We have expressed our opinion. But because of that, we will not reject the decision of the majority. This government came to power with the support of 102 MLAs," he added.

The massive row erupted in Kerala after Chief Minister VD Satheesan announced the government's proposal to sharply reduce the sales tax on "low-alcohol beverages" containing up to 20 per cent alcohol. Critics and the opposition left parties slammed the move, saying it aimed at favouring liquor giants like Bacardi.

As per the proposal, drinks with 0.5-10 per cent alcohol would attract a 120 per cent tax, while those with 10-20 per cent alcohol would be taxed at 175 per cent, compared with the existing 251 per cent tax on most liquor products. The government argues that it is merely creating a tax structure for a category of beverages that was already recognised under the previous LDF government's excise policy, and says the move is aimed at encouraging lower-alcohol alternatives to hard liquor.

Critics argue that cheaper low-alcohol drinks could encourage alcohol consumption, especially among young people, and accuse the government of benefiting liquor companies. The LDF has dubbed the move a "Bacardi tax" and alleged it could favour a private manufacturer, while religious organisations and Muslim groups say it contradicts efforts to curb substance abuse.

Amid the protests, the government backtracked and said the move would be implemented only after proper consultations.

- Ends