‘Planned move’: Kerala LoP Pinarayi Vijayan reiterates accusation against UDF over liquor tax cut

Thiruvananthapuram: Leader of the Opposition Pinarayi Vijayan has reiterated his allegations against the UDF government, accusing it of using its first budget to favour a major liquor corporation by drastically lowering taxes on low-alcohol, spirit-based drinks—a concern he has previously raised.

In an article published in a newspaper on Wednesday, Vijayan repeated his stance that the tax cut would drain hundreds of crores of rupees from the state exchequer to benefit private liquor manufacturers. He claimed that the government fast-tracked a file that had been kept pending by the preceding LDF administration since 2023. According to the Opposition leader, the file bypassed standard administrative delays, moving through the Secretariat to the Chief Minister's office within hours for record clearance.

Terming the policy a "planned move" rather than an ordinary administrative decision, Vijayan pointed out that the tax on low-alcohol beverages was slashed from over 251 per cent to 120 per cent. He warned that this reduction would drop prices and drive up alcohol consumption, completely ignoring public health concerns.

Furthermore, Vijayan alleged that the concession was tailored to favour liquor companies operating out of neighbouring Karnataka, rather than supporting Kerala's local farmers or consumers. He questioned the logic behind announcing a tax break before officially deciding if these products could even be sold in the state, noting that the Excise Department had previously indicated such a decision would only be finalised under the upcoming liquor policy.

The Opposition leader clarified that while the LDF had previously explored promoting low-alcohol beverages derived from local fruits like jackfruit and cashew apples to aid small-scale industries and farmers, the UDF's current proposal strictly benefits spirit-based, ready-to-drink options.

Criticising the lack of transparency, Vijayan stated that the decision bypassed normal consultations with relevant departments and the Cabinet. Taking a swipe at the ruling coalition's election slogan, he added, "Today, liquor companies and monopoly interests seeking to take control of the coastal region have become the new allies in Team UDF. This is a clear indication of the direction in which the UDF government is moving. Neither the chief minister nor the Cabinet can evade responsibility in this matter."

PTI