Thiruvananthapuram, June 27 (IANS). The Kerala government has not backed down from its controversial proposal to cut taxes on low-alcohol beverages despite growing opposition. The government has included this provision in the draft Finance Bill, increasing the possibility of a sharp political confrontation on this issue in the upcoming assembly session.
The draft finance bill, officially published on Saturday, will be presented in the Assembly on July 1. The bill proposes to reduce taxes on low-alcohol alcoholic beverages. However, the government has clarified that passage of the bill will not mean that the sale of new low-alcohol beverages will automatically begin.
According to government officials, it will be mandatory to obtain separate approval from the Excise Department before launching any new product in the market.
This proposal has been put forward at a time when the Indian Union Muslim League (IUML), a key ally of the ruling coalition UDF, has openly opposed it. Amid differences within the alliance, Chief Minister V.D. Satheesan will try to reach a consensus by holding a meeting with allies in the coming days.
Government sources say that apart from the provisions included in the Finance Bill, there are no plans to make any other changes in the tax system at present.
Congress leaders, including Excise Minister T. Siddique, say that the dispute within the party on this issue has been resolved for now. However, senior Congress leader and former KPCC president V.M. Sudheeran still remains the most vocal critic of this decision.
Sudheeran has demanded from the government that the proposal related to tax concession should be withdrawn and the related provisions should be removed before presenting the bill in the Assembly. He says this move is contrary to Congress’s long-standing policy of limiting the availability of liquor.
This proposal of the government has also been criticized by opposition parties, religious organizations and pro-liquor prohibition groups. They allege that reducing taxes on low-alcohol beverages would weaken the state’s stated policy of discouraging alcohol consumption.
However, the government says that this step has been taken only to rationalize the tax structure and should not be considered as any change in the liquor policy of the state.
With the discussion on the Finance Bill taking place in the Assembly, this issue has now become a major controversy in the state’s politics. This is likely to deepen the differences within the UDF, while the opposition has got a new political issue to corner the government.
–IANS
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