Overview
- The state revised budget fixed two new tax slabs for low‑alcohol beverages—120% for 0.5–10% ABV and 175% for above 10–20% ABV—replacing the uniform 251% IMFL levy announced in the June 19 revised budget.
- Chief Minister V. D. Satheesan has said the government only set tax rates and that the United Democratic Front must still approve any decision to allow sales, a clarification he made on June 24 during the Assembly reply.
- Senior Congress figures V. M. Sudheeran and K. C. Venugopal have publicly objected to the change and called for wider party discussion, creating visible tension inside the ruling UDF coalition.
- The Opposition LDF accused the government of fast‑tracking files to benefit a private liquor firm and raised corruption allegations naming Bacardi, an attack that led to protests in the Assembly and an LDF walkout when an adjournment motion was denied.
- Religious groups and temperance bodies warned the cut could boost youth drinking while proponents say the tax clarity could support small horti‑wine producers and agricultural suppliers; critics also estimate a sizable revenue hit of roughly ₹600 crore a year.