Kerala to decide on low-alcohol beverage tax cuts after UDF, Congress discussions

Thiruvananthapuram, Kerala Revenue Minister A P Anil Kumar on Friday said any policy decision on tax cut for low-alcohol beverages will be taken only after discussions within the ruling UDF and with the Congress leadership.

His remarks come amid controversy in Kerala over the government's proposal in the 2026 budget to cut tax for low-alcohol beverages.

The budget proposed a 120 per cent sales tax on drinks containing 0.5 to 10 per cent alcohol by volume and 175 per cent on those containing more than 10 per cent and up to 20 per cent.

The proposed tax structure has drawn criticism from the Opposition and some within Congress, who argue that lower taxes on low-alcohol beverages could encourage alcohol consumption and benefit private liquor companies. Senior Congress leader V M Sudheeran has also called for the proposal to be withdrawn.

Chief Minister V D Satheesan, who holds finance portfolio, has maintained that the budget only provides the tax framework and that no final decision has been taken on marketing or sale.

Addressing the controversy, Minister Kumar said policy matters would not be decided unilaterally.

"If it is a policy matter, discussions are held within the front and among the constituent parties. If something appears to be wrong, it will be corrected," he said.

Explaining the government's position, the minister said when a new decision is taken, it will not be unilateral as in the past.

"Any such decision will be made only after discussions with the concerned parties and the coalition leadership," he said.

Kumar further said that the chief minister himself has stated this on the floor of the Assembly, and everyone has heard it.

"If a stand has to be taken, it will be decided only after consultations with the party leadership and the coalition," he said.

Meanwhile, Thalassery Archbishop Joseph Pamplany welcomed CM Satheesan's decision to hold detailed discussions on the issue before taking a final call.

"The decision by the respected chief minister of Kerala to set aside time for a detailed discussion is a highly commendable one. We express our special gratitude to the CM for that stand," the Archbishop told reporters.

He said it was important that no one should appear to support or encourage substance abuse and that attempts to create confusion over the issue should be rejected.

The Archbishop also expressed appreciation for Satheesan's leadership on the matter, saying the courage and resolve shown by the chief minister in taking such a position deserve the highest appreciation.

The state government has maintained that the Budget provision relates only to taxation and that any broader policy decision will be taken only after consultations within the ruling coalition.