Thiruvananthapuram, June 27
The Communist Party of India (Marxist) (CPM) on Saturday levelled serious allegations against the Congress-led United Democratic Front (UDF) government, accusing it of extending tax concessions worth nearly ₹600 crore to major liquor companies while attempting to divert public attention through what it described as a misleading campaign against the previous Left Democratic Front (LDF) administration.
In a statement issued after its State Secretariat meeting, the CPM alleged that the V.D. Satheesan government had reduced taxes on low-alcohol beverages, resulting in a substantial loss of revenue to the State exchequer. The party further claimed that instead of addressing the issue, sections of the media were helping the government create a “smokescreen” by portraying the LDF’s liquor policy in a negative light.
Rejecting allegations that the previous LDF government had lowered liquor taxes or encouraged increased alcohol consumption, the CPM said its policy decisions were aimed at supporting farmers. It pointed out that permission was granted only for the manufacture of Horti Wine and Horti Liquor using agricultural produce other than food grains, with the objective of creating value for horticultural products.
The party said provisions relating to low-alcohol beverages were introduced only after considering the recommendations of the Udayabhanu Commission. It added that the policy was incorporated into the 2022-23 liquor policy after scrutiny by the Assembly Subject Committee and was later notified through the official gazette.
According to the CPM, no tax concessions were granted during the LDF’s tenure that reduced government revenue or favoured private liquor manufacturers. It also claimed that requests from liquor companies seeking tax reductions had been rejected.
The party further asserted that its Horti Wine policy generated an additional ₹80 crore in revenue and maintained that even products such as Horti Wine and Feni were not given tax benefits that would adversely affect the State’s finances.
Drawing a contrast with the present administration, the CPM alleged that a proposal left pending for more than three years under the LDF was processed with unusual speed by the UDF government to grant tax relief to low-alcohol beverages, benefiting large distilleries at the cost of nearly ₹600 crore in public revenue. It maintained that no amount of media publicity could obscure what it termed the government’s decision to favour liquor companies over the interests of the State.
