Bacardi tax relief row: Stormy scenes in Kerala assembly; Chief Minister demands removal of opposition allegations

THIRUVANANTHAPURAM: The Kerala Legislative Assembly witnessed turbulent scenes and a subsequent opposition walkout following allegations by Opposition Leader Pinarayi Vijayan regarding a controversial tax concession on low-alcohol beverages. Raising the issue during the session, Pinarayi claimed that the budget proposal to slash the tax rate from 251 percent to 120 percent was engineered to generate windfall profits for a Karnataka-based liquor manufacturer rather than to benefit the common public. He warned that the implementation of this policy would lead to the widespread, unrestricted availability of liquor akin to soft drinks across the state.

The political confrontation escalated after Speaker Thiruvanchoor Radhakrishnan rejected an adjournment motion on the matter introduced by K.N. Balagopal, ruling that the issue fell under the purview of general budget discussions. This decision prompted opposition lawmakers to march into the well of the House, raising slogans and disrupting proceedings for nearly half an hour. As the Speaker proceeded with the scheduled business of the day, the opposition staged a walkout in protest.

Pinarayi Vijayan specifically named the liquor firm Bacardi as the primary beneficiary of the tax relief. He noted that although the company had submitted an application to the excise and taxation department in 2023, the previous Left Democratic Front administration had refrained from taking action. He alleged that the current administration expedited the process with unusual urgency, noting that seven officials processed the file with extraordinary speed by May 21, suggesting high-level clearance. When the Speaker suggested raising the matter as a submission instead of an adjournment motion, Pinarayi questioned the impartiality of the chair, asking how such procedures could be permitted under the Speaker's oversight. The Speaker maintained that he had not entered into the merits of the allegations.

Chief Minister V.D. Satheesan strongly objected to the Opposition Leader's remarks, demanding their removal from the assembly records. The Chief Minister argued that adjournment motions should not be utilised to level unsubstantiated allegations and grievances, especially when the government lacked an immediate opportunity to respond. The Speaker assured the House that the remarks would be reviewed, and subsequently, the corresponding footage was removed from the official Assembly Television broadcast.