Thiruvananthapuram, 24 June (H.S.):
The Kerala government is expected to clarify its position on the controversial tax concession announced for low-alcohol beverages, as political opposition and discontent within the ruling United Democratic Front (UDF) continue to mount over the proposal.
The issue is likely to come up for discussion at the State Cabinet meeting scheduled for Wednesday morning. Chief Minister V.D. Satheesan is also expected to outline the government's stand while replying to the Budget debate in the Legislative Assembly later in the day.
The controversy erupted after the State Budget proposed a reduction in taxes on beverages containing up to 10 per cent alcohol. Reports suggest that the proposal has triggered unease not only among opposition parties but also within sections of the UDF. The ruling coalition's key ally, the Indian Union Muslim League (IUML), is understood to have expressed strong reservations over the move, arguing that such a policy decision should have been discussed within the front before being announced.
According to political sources, the IUML leadership has conveyed its concerns directly to the government. Similar criticism has emerged within the Congress, with some leaders reportedly questioning whether the decision was taken without adequate consultation with Excise Minister M. Liju or the UDF leadership.
Despite the backlash, indications suggest that Chief Minister Satheesan may not immediately withdraw or alter the tax proposal. Supporters of the Chief Minister argue that fixing a tax rate does not automatically amount to granting permission for the sale of such products. They maintain that any further decisions would be taken only after the government finalises its comprehensive liquor policy and secures broader consensus within the coalition.
Those backing the proposal also believe that frequent policy reversals within the first month of the government's tenure could create a negative political impression and weaken its reform agenda.
The debate has also revived attention on a policy introduced by the previous Left Democratic Front (LDF) government, which had amended foreign liquor rules to classify beverages containing between 0.5 per cent and 20 per cent alcohol as a separate category of low-alcohol drinks. The current controversy centres on how the new government intends to regulate and tax that category going forward.
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Hindusthan Samachar / Arun Lakshman
