Pressure mounts on UDF Government over low-alcohol beverage tax cut

Pressure is mounting on the Congress-led UDF Government in Kerala to review its decision to reduce taxes on low-alcohol beverages, with key ally IUML expressing concern over the move and the Opposition CPI(M) intensifying its attack.

The latest sign of discomfort within the ruling front came from Indian Union Muslim League (IUML) State president Sadique Ali Shihab Thangal, who said concerns raised over the budget proposal to reduce taxes on low-alcohol beverages should be addressed even as the Government pushes ahead with its anti-drug campaign, ‘Operation Toofan’.

In articles published in two Malayalam dailies, Thangal described substance abuse as a grave menace affecting individuals, families and society, and said efforts to build a drug-free Kerala should go hand in hand with addressing apprehensions over the tax concessions announced in the Budget.

“While Operation Toofan to drive out narcotics is being embraced across the State, concerns that have arisen regarding the liquor tax concessions in the budget should also be allayed,” he said.

Thangal said studies indicated that a section of those who initially experiment with intoxicants eventually become habitual users, and stressed the need to create drug-free villages alongside drug-free homes.

He praised the UDF Government’s anti-drug initiative and said the public should extend strong support to the campaign.

Referring to the seizure of narcotics worth around Rs 10 crore and the arrest of nearly 3,000 people within a short period under Operation Toofan, he termed the drive a significant step against substance abuse.

Thangal’s remarks assume significance as political opponents have been questioning the silence of the IUML, a key constituent of the ruling UDF, on the Government’s proposal. Meanwhile, senior CPI(M) leader and former finance minister KN Balagopal said the previous LDF Government had opposed such products, fearing that their availability at lower prices would encourage “social drinking” and eventually lead to higher alcohol consumption.

He alleged that the Government is not ready to clearly state whether it will withdraw the tax cut proposal or stick to its decision.

Earlier in the day, Balagopal raised the tax cut issue in the state assembly as an adjournment motion during the zero hour, leading to a ruckus in the House, following which the Left opposition staged a walkout.

“Information that has come out shows that the file related to it was processed at a record pace.  We want to know how a decision to permit flavoured alcoholic beverages, which had been rejected by our Government, was taken at war-footing speed,” he told reporters here.

He also sought to know how the decision was taken without the knowledge of the Excise Minister and the Cabinet, and in a manner contrary to the UDF’s election manifesto.

Balagopal also pointed out that senior Congress leader VM Sudheeran had criticised the proposal as being contrary to the UDF’s election manifesto promise to curb the spread of alcohol and narcotic substances.

The State Budget had proposed reducing taxes on low-alcohol beverages from 251 per cent to 120 per cent.

The Opposition CPI(M) has, for the past several days, alleged that the move was intended to benefit liquor companies and could pave the way for corruption. The LDF also staged a walkout in the Assembly earlier in the day, demanding a discussion on the issue during Zero Hour.

Adding to the pressure on the Government, Sudheeran recently wrote to Chief Minister VD Satheesan seeking immediate withdrawal of the proposal, contending that it ran counter to the UDF’s stated commitment to restrict alcohol and drug abuse.

Defending the Government’s position, Local Self-Government Minister KM Shaji recently said the UDF’s liquor policy was aimed at reducing alcohol consumption and reiterated the IUML’s long-standing opposition to liquor.

Excise Minister M Liju has maintained that the Government has not taken any decision to introduce low-alcohol beverages in the State and that the budget announcement pertains only to taxation.

Home Minister Ramesh Chennithala has also defended the proposal, saying the UDF Government has not permitted any new bars since assuming office and insisting that its policy is aimed at gradually reducing alcohol consumption and availability in the State.