Thiruvananthapuram, 27 June (H.S.):

The Communist Party of India (Marxist) (CPM) on Saturday accused the Congress-led United Democratic Front (UDF) government of granting tax concessions worth nearly ₹600 crore to large liquor companies and alleged that a section of the media was attempting to shield Chief Minister V.D. Satheesan through a false and misleading campaign against the previous Left Democratic Front (LDF) government.

In a statement issued after its State Secretariat meeting, the CPM said the real issue was the Satheesan government's decision to reduce taxes on low-alcohol beverages, resulting in a substantial loss to the State exchequer. Instead of addressing the allegations, the party claimed, the UDF and certain media organisations were attempting to create a smokescreen by spreading misinformation about the LDF's liquor policy.

The CPM rejected allegations that the previous LDF government had reduced liquor taxes or introduced policies that promoted liquor consumption. It said the LDF had only permitted the manufacture of Horti Wine and Horti Liquor from agricultural produce other than food grains, responding to demands from farmers to create value for horticultural products.

The party said it had also introduced provisions for low-alcohol beverages after taking into account the recommendations of the Udayabhanu Commission. The policy was announced in the 2022-23 liquor policy, discussed by the Assembly Subject Committee and incorporated into the relevant rules before being officially notified through the gazette.

According to the CPM, the entire process under the LDF government was transparent and no tax concessions were granted that would reduce government revenue or benefit private liquor companies. It further claimed that requests from liquor manufacturers seeking tax reductions were not accepted during the LDF's tenure.

The party also said it had ensured that even Horti Wine and Feni, though produced from agricultural products, were not given tax concessions that would cause revenue losses. Instead, the Horti Wine policy had generated an additional ₹80 crore in revenue for the State, it claimed.

Drawing a comparison with the present government, the CPM alleged that the Satheesan administration had moved a file, on which no action had been taken for more than three years under the LDF, with unusual speed to grant tax relief to low-alcohol beverages, thereby benefiting major distilleries while causing a loss of around ₹600 crore to the State treasury.

The party asserted that no amount of media propaganda could conceal what it described as the Chief Minister's decision to favour liquor companies at the expense of public revenue.

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Hindusthan Samachar / Arun Lakshman