Overview
- The UDF government’s revised budget announced on Saturday set sales tax at 120% for beverages with 0.5–10% alcohol and 175% for 10–20% alcohol, replacing a uniform 251% levy.
- Opposition leaders including Pinarayi Vijayan and former excise minister M. B. Rajesh say the move looks suspicious, accuse the government of favoring private liquor firms, and claim an annual revenue loss of about Rs 600 crore.
- The state’s excise minister M. Liju and Home Minister Ramesh Chennithala said the change was a finance department tax decision and that the Excise Department has issued no policy to permit new sales or bars.
- Critics warn the lower tax could make ready‑to‑drink and beer products cheaper and more widely available through Bevco outlets, raising public‑health concerns about higher consumption among young people.
- The dispute builds on Abkari Act amendments from 2023 and 2025 that created a low‑alcohol category intended for fruit‑based horti wines, and the government has said detailed liquor policy talks will follow after the Assembly session.