Published Jun 23, 2026 | 12:36 PM ⚊ Updated Jun 23, 2026 | 12:36 PM
The LDF staged the walkout over the Budget proposal to reduce the tax rate on low-alcohol drinks. (Courtesy: Kerala Assembly screengrab)
Synopsis: The 131% tax cut for low-alcohol drinks was questioned again by the opposition LDF—this time on the floor of the House.
The Opposition LDF disrupted Kerala Assembly proceedings on Tuesday and later staged a walkout over the Budget proposal to reduce the tax rate on low-alcohol beverages.
Opposition leader Pinarayi Vijayan alleged that the tax cut was for the benefit of liquor giant Bacardi.
He pointed out that the existing tax of 251% was being reduced significantly, questioning the rationale behind the decision.
In CM VD Satheesan’s maiden Budget, the sales tax for beverages with 0.5%–10% alcohol content was fixed at 120% and at 175% for those with 10%–20% alcohol content.
“What is the need for such a massive tax cut of 131%? It is tailored to favour a single private entity from Karnataka called ‘Bacardi’. This policy will turn low-strength alcohol into soft drinks, making it as easily available to our youth as cola,” Vijayan was quoted as saying.
The uproar began after Speaker Thiruvanchoor Radhakrishnan rejected an adjournment motion moved by former finance minister KN Balagopal on the issue.
The Speaker said the matter could be raised during the ongoing Budget discussions and cited a previous ruling by former Speaker Varkala Radhakrishnan against allowing such motions.
Balagopal criticised the proposal, saying it was part of an attempt to increase the availability of liquor in the state. He questioned why the government was avoiding a discussion on the issue.
Following the speaker’s refusal to entertain the adjournment motion, LDF MLAs entered the well of the House and raised slogans targeting alleged differences within the Congress over the proposal.
The Opposition later walked out after Vijayan repeated his allegations.
Home Minister Ramesh Chennithala and CM VD Satheesan objected to the remarks and sought its removal from the Assembly records.
“The opposition leader has read out a script of completely baseless corruption allegations. Bringing these fictional stories into the official records under a standard adjournment motion is a gross violation of House rules,” Satheesan said.
UDF leaders had spoken of the irony in the LDF raising the issue. “The previous LDF government was the one that cleared the production of low-alcohol beverages from local fruits to ‘help farmers.’ We simply rationalised the tax framework, and now they claim it’s a corporate conspiracy!”
The Speaker said the matter will be examined.
BJP leader Rajeev Chandrasekhar had also slammed the reduction in taxes on Monday. “The LDF and UDF are the same once again. The government announces a fight against drugs while trying to increase the flow of intoxicants,” Chandrasekhar had said.
(With inputs from Sreelakshmi Soman.)
