Minister Liju denies new Kerala liquor policy, budget tax tweak triggers fresh political row

Thiruvananthapuram, June 20 (IANS) A political storm erupted on Saturday over the Budget proposal allowing a lower tax structure for low-alcohol beverages, with former Kerala Excise Minister and CPI-M leader M.B. Rajesh attacking the move and the present Excise Minister M. Liju dismissing allegations of a new liquor policy.

Reacting to Rajesh’s charges, Minister Liju said the Budget announcement by Chief Minister V.D. Satheesan was only a financial exercise involving taxation of wine and liquor products and did not amount to a new liquor policy.

“There is no new liquor policy in place. A policy, when it is framed, will come only after consultations with all stakeholders. The government will conduct an elaborate exercise before announcing it,” he added.

The clarification came after Rajesh alleged that the UDF government’s move to reduce taxes on low strength alcoholic beverages would lead to the widespread availability of ready-to-drink alcoholic products across Kerala and mainly benefit corporate liquor companies.

Rajesh claimed that the tax concession could cause a loss of around Rs 600 crore to the state exchequer and questioned the basis for granting the relief.

He alleged that the decision was influenced by liquor industry interests and demanded that the state government explain the rationale behind the move.

“The decision will facilitate the large scale sale of low-alcohol beverages through Bevco outlets. Products that can be consumed like soft drinks will become easily available,” Rajesh alleged.

He also accused a Karnataka-based liquor lobby of being behind the move and sought clarification from Chief Minister Satheesan on the alleged influence of the liquor industry.

However, the political debate has also brought back comparisons with the liquor landscape under the previous decade of LDF government’s tenure.

When the Oommen Chandy-led UDF government demitted office in 2016, Kerala had only 29 functional liquor bars.

After a decade of the Pinarayi Vijayan government, the number of bar hotels had risen significantly, reaching 884 by the time the LDF government ended its tenure in May 2026.

The irony has not escaped political observers, with Rajesh’s warning that the latest tax tweak would expand availability of low alcohol beverages being contrasted with the sharp rise in the number of bars during the LDF’s tenure.

Rajesh, who served as Excise Minister in the outgoing LDF government, was among the 13 Ministers who lost in the recent Kerala Assembly elections.

He also lost his sitting seat of Thrithala in Palakkad, adding another political layer to his attack on the new government’s liquor policy direction.

The controversy is expected to intensify as the UDF government moves towards framing its broader liquor policy.

–IANS

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