No new liquor policy yet; tax relief just technical adjustment, says Minister M Liju

THIRUVANANTHAPURAM: State Excise Minister M. Liju clarified that the Excise Department has not made any strategic or policy-level decisions regarding the tax concessions announced for low-strength alcohol in the recent state budget. Speaking in Thiruvananthapuram, the minister emphasised that the current adjustment is merely a technical calibration of sales tax rates executed by the Goods and Services Tax (GST) department, rather than a structural overhaul of liquor regulations.

Comprehensive discussions regarding the state’s Abkari policy are scheduled to take place following the conclusion of the ongoing legislative assembly session. The United Democratic Front (UDF) government intends to consult stakeholders across various sectors to gather diverse opinions before officially announcing its new liquor policy. The current measure remains entirely confined to taxation parameters.

Addressing criticisms from the opposition, Liju pointed out that the classification of beverages with an alcohol content between 0.5 percent and 20 percent as low-strength was originally established under the previous Left Democratic Front (LDF) administration. The previous government had also cleared the path for manufacturing horti-wine within the state and authorised licenses for the necessary distilleries. Given this legislative history, the minister questioned the rationale behind the LDF's current objections to the tax restructuring.