Thiruvananthapuram: Indications suggest that Chief Minister V D Satheesan will not back down from the move that fixed the tax rate prior to facilitating the sale of low-alcohol liquor. He is likely to stand firm on the proposal when replying to the budget discussion in the Legislative Assembly on Wednesday. Simply fixing the tax rate does not mean final approval for sale. The current thinking is that further steps should only be taken based on a consensus after the UDF government’s liquor policy is formulated.

The previous LDF government had amended the foreign liquor rules, categorising beverages with an alcohol-by-volume (ABV) content of 0.5% to 20% as a special category of low-alcohol liquor. Although an agreement was reached on the tax structure, it was not implemented at the final moment. The Chief Minister's Office has now retrieved the relevant files from the previous government's tenure. While the consensus under the previous government was a flat 175% tax on low-alcohol liquor, the current budget has split it into two categories. The budget proposes a 150% tax for spirits with 0.5% to 10% alcohol content, and 200% for those with 10% to 20% alcohol content.

Those supporting the Chief Minister assess that frequent rollbacks within just a month of assuming power would lead to a political backlash. The Chief Minister expects to overcome the opposition once the details are clarified in the Assembly.

 

Front-wide consensus needed

The major challenge facing the Chief Minister is that a general consensus must be reached within the UDF, and particularly within the Congress party, if the sale of low-alcohol liquor is to go ahead. The Chief Minister will have to hold his ground on this issue until the liquor policy is framed. The election manifesto promises a phased reduction in alcohol consumption. With the liquor policy yet to take shape, criticism is rising within the Congress against the Chief Minister for taking a policy decision without consulting senior leaders or cabinet colleagues. However, those supporting the Chief Minister's action argue that low-alcohol liquor—as available abroad—would be beneficial in preventing more people from falling into strong alcohol addiction.