Kerala Government Shelves Alcohol Tax Proposal Amid Religious Community Opposition

The Kerala government has put its proposal to reduce sales tax on low-alcohol beverages on hold following widespread protests from political parties, religious organisations and community groups. Chief Minister V D Satheesan told the Assembly on Wednesday that no final decision would be taken until extensive consultations are held within the ruling United Democratic Front (UDF).

The controversy began after Finance Minister V D Satheesan, who also holds the finance portfolio, announced a new tax structure for low-alcohol beverages in the state budget last week. The proposal was aimed at reducing the sales tax on these products, but it immediately triggered opposition from within the ruling alliance and outside it.

The Congress and its UDF ally, the Indian Union Muslim League (IUML), strongly objected to the proposal, arguing that making low-alcohol beverages cheaper could encourage higher alcohol consumption. Several Muslim clerics' organisations and prominent Christian churches also voiced concern, warning that the move could worsen liquor addiction and create wider social problems in the state.

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The Opposition CPI(M) criticised the proposal as well, alleging that the decision was influenced by vested interests and raising questions over the rationale behind the tax reduction. The issue soon escalated into a political controversy, prompting protests and increasing pressure on the government to reconsider its stance.

Responding to the criticism, Chief Minister Satheesan assured the Assembly that the proposal would not be implemented without discussions among UDF partners. He said the government would consult alliance leaders before taking a final decision, effectively putting the plan on hold for the time being while attempting to build consensus on the sensitive issue.

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