Low-alcohol liquor tax proposal sparks uproar in Kerala Assembly

Thiruvananthapuram: Leader of Opposition Pinarayi Vijayan on Tuesday alleged corruption behind the proposal in the state Budget to grant tax concessions for low-alcohol liquor, triggering a sharp confrontation in the Kerala Assembly.

Speaking during the discussion on the Opposition’s notice seeking an adjournment motion on the issue, Vijayan alleged that the move was aimed at facilitating undue gains for a private liquor company.

The Opposition leader claimed that the tax proposal had been inserted into the Budget with the intention of benefiting a private firm. He said the Budget schedule itself indicated that the new tax proposal had not been properly considered or planned.

“This will create an opportunity for a private liquor company to make huge profits. That is the serious issue involved,” Vijayan said.

He alleged that the move was intended to benefit a Karnataka-based liquor company and claimed that the tax reduction was aimed at favouring the private liquor major Bacardi.

Vijayan said the Budget contained a proposal that could have serious consequences for the state and urged Speaker Thiruvanchoor Radhakrishnan to allow the adjournment motion. However, the Speaker rejected the notice, saying the issue was part of the Budget discussion and could not be taken up as an adjournment motion.

“Can this be allowed when a person as fair as you is sitting in the Chair?” Vijayan asked the Speaker.

Following the refusal to admit the motion, the Opposition staged a strong protest inside the House. Opposition members raised slogans, entered the well of the Assembly, and later walked out.

The Speaker said that the Watch and Ward staff would not be called despite the protest. He maintained that the issue was one that had to be raised during the Budget debate and that the government would respond at the appropriate time.

“Our fears of corruption are increasing as even this aspect has been deleted from the Sabha TV. This is something new,” said K.N. Balagopal, who spoke to the media after the opposition walked out of the house.

Balagopal, the former Finance Minister, added that during the previous LDF government’s tenure, a proposal to produce wine and low-grade alcohol from fruits and vegetables had been kept on hold in view of its possible social impact.