BJP slams Kerala Govt over low-alcohol liquor tax cut

The BJP on Friday slammed the Congress-led UDF Government in Kerala over its proposal to reduce the tax on low-alcohol beverages, alleging that the move is aimed at benefiting liquor businessmen at the cost of the State’s revenue and the future of the youth.The remarks came amid a controversy in Kerala over the Government’s proposal in the 2026-27 Budget to reduce the tax on low-alcohol beverages.

The Budget proposed a reduction from 251 per cent to 120 per cent sales tax on beverages containing 0.5 per cent 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 State Budget announced a reduction in taxes from 251 per cent to 120 per cent on low-alcohol beverages. BJP national spokesperson and Rajya Sabha MP Sudhanshu Trivedi alleged that the Congress has become “intoxicated with power” and that the Kerala Government has taken a “very shameful decision”. “The Congress-led UDF Government, along with its Muslim League ally, has recently come to power in Kerala. I think the Congress has become so intoxicated with power that the Kerala Government has taken a very shameful decision. It has reduced the excise tax on low-alcohol liquor from 251 per cent to 121 per cent, effectively cutting it by more than half,” he claimed.

Trivedi alleged that it will reduce Government revenue while benefiting liquor traders, while questioning the rationale behind the move. “I want to ask the Congress party: by reducing the excise and, consequently, Government revenue, who stands to benefit? The benefit will go to liquor businessmen. And if your argument is that consumption will increase, does that mean you want to entrap the entire young generation into liquor?” he asked.

He claimed the decision is particularly questionable at a time when Kerala home minister Ramesh Chennithala has acknowledged that the State’s drug problem is becoming increasingly serious.
“This is particularly disturbing when Kerala’s home minister has himself said that the drug problem in the State is becoming increasingly serious and is turning into a challenge comparable to Punjab. At this juncture, what is the logic of reducing excise, reducing Government revenues, providing more benefits to your friends in the liquor business, and putting the future of the younger generation in peril?” Trivedi said. Targeting Congress leader Rahul Gandhi, he asked, “What is your plan for the country’s youth? Is it to provide cheaper liquor, push them into alcoholism, fill the pockets of liquor businessmen, reduce the State’s revenue and play with Kerala’s future?”

Trivedi said the Congress should remember that it is in power in Kerala and not merely in the Opposition.“Is this the Congress model? Do you want to keep Kerala’s youth engulfed in liquor? The BJP strongly protests this and wants to ask the Congress why it wants to play with the future of India’s youth by making liquor cheaper,” he said.
“The people know how to end that intoxication and will give their answer at the appropriate time,” he added.

The BJP leader also alleged that the ruling UDF and the Opposition LDF were “two sides of the same coin” on liquor policy.
“The Left Government created the new category of low-alcohol liquor so that it could expand the business and benefit its associates. Now the Congress has reduced the excise on it and is trying to engulf the entire State, especially Kerala’s youth, in liquor. “So both the Left and the Congress are two sides of the same coin on liquor policy,” he alleged. Kerala Revenue Minister AP 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.

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