Tax exemption for low alcohol beverages in Finance Bill aimed at helping private liquor lobby: Pinarayi Vijayan

THIRUVANANTHAPURAM: Opposition leader Pinarayi Vijayan has alleged that the inclusion of a tax concession for low-alcohol beverages in the Finance Bill is a move to benefit the private liquor lobby.

In a social media post, Vijayan questioned the government’s decision to include the tax reduction proposal in the Finance Bill. He said that once the bill is passed by the Assembly, the concession will become part of the law and cannot be easily withdrawn.

Vijayan also said that the UDF’s proposed discussions on the matter would have little relevance after the tax concession has already been included in the bill. He alleged that the move was only an attempt to create confusion and approve the “unfair demands of liquor companies.”

“Once the Finance Bill containing the tax concession is passed by the Assembly, it will become law. The UDF cannot stop its implementation, nor can it freeze the decision through an executive order later,” Vijayan said.

He also questioned the relevance of further discussions on the matter after the proposal has already been included in the bill. “After adding the tax concession proposal to the Finance Bill, what is the relevance of the UDF discussion? This is only a move to create confusion and approve the unreasonable demands of liquor companies,” he said.

Vijayan claimed that the proposed tax reduction for low-alcohol liquor is the first such concession being given to the spirit-based IMFL category in Kerala. He also said that the proposal proves that allegations against the LDF government regarding similar plans were false.

Criticising the government’s stand that the liquor tax decision would be discussed within the UDF before implementation, Vijayan said, “The discussion promised by the UDF will become a mere formality once the Finance Bill is passed.”

He further alleged that the decision was taken without proper consultation with other departments and accused the government of favouring private interests. “The government should correct this wrong decision to provide tax relief on liquor,” Vijayan said.