Kerala to decide on liquor tax cut only after coalition talks: Minister

Kerala Revenue Minister A.P. Anil Kumar on Friday said that any decision on reducing taxes for low-alcohol beverages will be taken only after discussions within the ruling United Democratic Front (UDF) and with the Congress leadership.

The Minister's remarks come amid controversy over a proposal in the state's 2026 Revised Budget to cut taxes on low-alcohol beverages. The budget proposed a 120% sales tax on drinks containing 0.5 to 10% alcohol by volume, and 175% on those with more than 10% and up to 20% alcohol.

The proposal has drawn criticism from opposition parties and some Congress leaders, who argue that lower taxes on such beverages could encourage alcohol consumption and benefit private liquor companies. Senior Congress leader V.M. Sudheeran has called for the proposal to be withdrawn.

Chief Minister V.D. Satheesan, who also 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 of these products.

Addressing the controversy, Mr. Kumar said policy matters would not be decided unilaterally. “If it is a policy matter, discussions are held within the front and among the constituent parties. If something appears to be wrong, it will be corrected,” he said.

The Minister further explained that when a new decision is taken, it will not be unilateral as in the past. “Any such decision will be made only after discussions with the concerned parties and the coalition leadership,” he said.

Mr. Kumar added that the Chief Minister himself has stated this on the floor of the Assembly, and everyone has heard it. “If a stand has to be taken, it will be decided only after consultations with the party leadership and the coalition,” he said.

Meanwhile, Thalassery Archbishop Joseph Pamplany welcomed Mr. Satheesan's decision to hold detailed discussions before finalising the policy. “The decision by the respected Chief Minister of Kerala to set aside time for a detailed discussion is a highly commendable one. We express our special gratitude to the CM for that stand,” the Archbishop told reporters.

The Archbishop said it was important that no one should appear to support or encourage substance abuse, and that attempts to create confusion over the issue should be rejected. He also expressed appreciation for Mr. Satheesan's leadership, saying the courage and resolve shown by the Chief Minister deserve the highest appreciation.

The state government has maintained that the budget provision relates only to taxation, and that any broader policy decision will be taken only after consultations within the ruling coalition.