Vijayan alleges liquor tax cut to favour firms

Leader of the Opposition Pinarayi Vijayan on Thursday accused the UDF government of pushing through liquor tax cuts to favour private manufacturers. The Finance Bill incorporating the provision was passed by the Assembly a day earlier.

- HD Bureau

The row centres on a provision reducing the sales tax on low-alcohol beverages, a category covering drinks with alcohol strength from 0.5 per cent to 20 per cent by volume. The measure cuts the levy from the prevailing 251 per cent on most hard liquor to 120 per cent for beverages up to 10 per cent alcohol and 175 per cent for those above 10 per cent and up to 20 per cent.

Vijayan said Chief Minister V D Satheesan, who also holds the Finance portfolio, had shown “unnecessary haste and stubbornness” in moving the provision through the Assembly. He alleged that the government had disregarded legislative conventions and failed to secure proper discussion within the ruling front before bringing the proposal into the Finance Bill.