Low-alcohol beverages: Govt decision expected today, finance bill to be submitted to Governor

THIRUVANANTHAPURAM: The decision on implementing the budget proposal to grant tax exemptions for low-alcohol beverages in the state is expected today. For the tax relaxation to take effect, the corresponding Finance Bill must be submitted to the Governor today for prior approval, and copies must be distributed to the members of the Legislative Assembly.

Only after this step can the bill be introduced and passed in the Assembly. Once the Assembly passes it, the government is legally bound to implement it. Otherwise, affected institutions or individuals can approach the High Court.

The Assembly will meet for three more days starting Monday. During this period, demands for grants from various departments, the appropriation bill, and the finance bill must be passed.

Usually, passing the demands for 47 departments takes up to 10 days. However, since this is a revised budget, the business advisory committee has decided to complete all procedures within three days.

Although the tax exemption for low-alcohol beverages is included as a budget proposal, the Chief Minister has the authority to exclude it from the Finance Bill.

Chief Minister V.D. Satheesan, however, stated in the Assembly that tax relief for low-alcohol beverages would be implemented only in accordance with the UDF’s liquor policy. Experts point out that once a law is passed by the Assembly, it cannot be set aside even if the policy changes later.

If the UDF decides against tax relief for low-alcohol beverages, the government must publish a notification in the gazette, bring the matter back to the Assembly, and formally withdraw the amendment made under the budget proposal.