Leader of the Opposition Pinarayi Vijayan on Saturday said the decision of the State government to lower the tax rates for low-alcohol beverages is baffling. Criticism is already rife that this is being done in the commercial interest of liquor companies, he said.
Attacking the announcement made by Chief Minister V.D. Satheesan in his maiden Budget presented on Friday, Mr. Vijayan said the prevailing rate of tax in the State for liquor made from spirit is 251%. Governments over the years have increased tax on liquor with a view to lowering consumption. But when the rate is reduced by half or more, it could lead to a rise in consumption, Mr. Vijayan argued. When the government has not reduced the tax on other more important items, lowering the taxes on liquor reeks of its lopsided priority, he said.
Communist Party of India (CPI) State secretary Binoy Viswam urged the government to review the decision, which he said will only benefit private manufacturers. The previous LDF government had permitted production of low-alcohol beverages from fruits and vegetables to support farmers. The present government is seeking to misuse that for the benefit of private liquor firms, he alleged.
Published – June 20, 2026 09:47 pm IST
