Liquor Tax Cut Was Chief Minister’s Unilateral Decision, Says Pinarayi Vijayan

Thiruvananthapuram: Leader of the Opposition Pinarayi Vijayan has alleged that Chief Minister V D Satheesan is unilaterally imposing the budget's liquor tax concession — intended to benefit a private liquor lobby — without discussing it within the front or the cabinet. Writing on Facebook, the CPI(M) leader pointed out that even though Satheesan had said the proposal would be implemented only after discussion within the UDF, the amendment granting tax relief on low-strength liquor has already been included in the Finance Bill presented in the Assembly.

He said this tax-relief proposal in the Finance Bill exposes as baseless the earlier allegation that the LDF government had tried to grant a similar concession. The amendment links low-strength liquor to the "Horti Wine" category, marking the first time in the state that a tax concession has been extended to a spirit-based low-strength IMFL category.

Pinarayi Vijayan explained that once the Assembly passes the Finance Bill, the tax relief becomes law, and the UDF would have no legal way to block its implementation thereafter. A tax provision that becomes law through a passed bill cannot be frozen merely by an executive order, he said, asking what relevance any subsequent "UDF discussion" would have once the provision is already written into the Finance Bill. This, he said, is merely a smokescreen to legitimise the liquor company's improper demand.

He noted that the Opposition, the media, and religious and community organisations have all raised strong objections to the liquor tax concession. The opposition and concern voiced by a section within the Congress and by allied parties, he said, is itself proof that the decision was never a collective one.

He pointed out that even the Excise Minister had indicated he was unaware of the change in excise policy, reflecting discontent within the ruling front itself over the Chief Minister, who also holds the Finance portfolio, unilaterally interfering in liquor policy. The UDF discussion offered as a solution to all this, he said, would become a mere farce once the Assembly passes the Finance Bill.

He said the normal, transparent procedure is for the Finance Department to draw up budget proposals based on inputs from the respective administrative departments — but what is being witnessed instead is the Chief Minister, who also holds the Finance portfolio, imposing his own interests over other departments. He said it is for the Congress leadership to examine this seriously.

Pinarayi Vijayan said even the pre-election notion of "Team UDF" has now effectively been privatised, with liquor companies and corporates seeking to gain control over the coastline emerging as its new allies. He said the past month has seen numerous instances of the Chief Minister taking unilateral, consequential decisions without the knowledge of the front or the cabinet, and demanded that the government correct its mistaken decision to grant the liquor tax concession.