Decision to reduce tax on soft drinks: Pinarayi

Leader of Opposition Pinarayi Vijayan on Saturday said the state government’s decision to reduce tax rates on soft drinks was puzzling. Criticism is already widespread that this is being done in the commercial interests of spirits companies, he said.

Challenging the announcement made by Chief Minister VD Satheesan in his first budget presented on Friday, Mr. Vijayan said the prevailing tax rate in the state for liquor made from spirit is 251%. Governments have increased tax on spirits over the years to reduce consumption. But when the rate is halved or more, it could lead to an increase in consumption, Mr. Vijayan argued. When the government hasn’t cut tax on other more important items, cutting liquor taxes smacks of its skewed priority, he said.

Communist Party of India (CPI) state secretary Binoy Viswam urged the government to review the decision, which he said would only benefit private manufacturers. The previous LDF government allowed the production of low-alcohol drinks from fruits and vegetables to support farmers. He alleged that the current government is trying to abuse this to the benefit of private liquor firms.

Published – 20 Jun 2026 21:47 IST