Excise minister to meet chief minister over tax relief for low-alcohol beverages

THIRUVANANTHAPURAM Excise Minister M Liju is all set to meet Chief Minister V D Satheesan on Monday amidst the growing criticism over the budget announcement granting lower taxes on low-alcohol beverages. The minister will express his dissatisfaction over the decision, which was allegedly taken without consulting the excise department. The meeting is expected to take place in the assembly.

The general discussions on the revised budget will be held today, tomorrow and day after tomorrow. The tax concession for low-alcohol beverages and private participation in mineral processing is expected to be major topics of debate. The opposition has decided to strongly oppose both proposals, and criticism has also emerged from within the Congress party.

There are allegations that the budget's proposal regarding the sale tax structure for low-alcohol beverages was introduced without prior discussion within the UDF or the party. Under the proposal, beverages containing 0.5% to 10% alcohol will attract a 120% tax, while those containing more than 10% and up to 20% alcohol will be taxed at 175%. Although the previous LDF government had amended rules to permit the production of low-alcohol beverages, it had not offered any tax concessions.

The government had earlier introduced three amendments covering wine, liquor, and low-alcohol beverages produced from agricultural products. The objective was to help farmers earn additional income by producing value-added products and low-alcohol beverages from crops such as cashew, pineapples, jackfruit, bananas, and nutmeg husks.