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Pinarayi Vijayan Slams Kerala Liquor Tax Cut, Alleges Move Favours Industry Interests

- June 20, 2026


Thiruvananthapuram, June 20

Leader of the Opposition Pinarayi Vijayan on Saturday launched a sharp attack on the Kerala government’s proposal to reduce taxes on certain categories of liquor, describing the move as “highly suspicious” and questioning whether it was designed to benefit liquor manufacturers rather than serve the broader interests of society.

In a Facebook post, Vijayan criticised the tax concession announced in the UDF government’s Budget and warned that lowering the tax burden on alcoholic beverages could lead to a significant rise in alcohol consumption, particularly among young people.

Under Kerala’s existing excise regime, liquor produced from spirit is subject to a tax of 251 per cent. The Budget, however, proposes reducing the tax to 120 per cent for beverages containing up to 10 per cent alcohol, effectively slashing the levy by more than half. The government has maintained that the concession is intended only for low-alcohol beverages.

Vijayan argued that successive governments had traditionally imposed high taxes on liquor not only to generate revenue but also as a public health measure aimed at discouraging alcohol consumption. He said the proposed reduction marked a departure from that approach and could have far-reaching social consequences.

According to the former Chief Minister, even if the concession is limited to low-alcohol drinks, making such products significantly cheaper could encourage greater alcohol use and potentially act as a gateway to the consumption of stronger alcoholic beverages.

He also questioned the government’s priorities, asking why tax relief had been extended to alcohol while ordinary citizens facing rising living costs had not received comparable financial support.

“Is reducing the price of liquor the government’s priority? What benefit will society gain from such a decision apart from long-term social consequences?” Vijayan asked.

Recalling past controversies surrounding changes to Kerala’s excise policy, he noted that religious organisations, community groups, anti-liquor movements and political parties, including the Indian Union Muslim League, had repeatedly expressed concerns over measures perceived as encouraging alcohol consumption.

Calling for a collective response beyond political lines, Vijayan urged citizens and social organisations to oppose policies that could increase alcohol use and expose future generations to the risks of addiction and substance abuse.