Kerala’s former excise minister took down the UDF for reducing the tax on low-alcohol beverages

CPI(M) leader MB Rajesh

Former excise minister MB Rajesh has claimed that the United Democratic Front (UDF) government’s decision to reduce taxes on soft drinks is aimed at increasing the availability of alcohol in the state.

Addressing the media here on Saturday, Mr. Rajesh alleged that the Karnataka-based liquor lobby was behind the move and demanded that Chief Minister VD Satheesan disclose the amount received in connection with the decision.

He said the previous Left Democratic Front (LDF) government had allowed the production of soft drinks only from fruits and agricultural products. He alleged that the UDF government has now allowed production using alcohol, which he said would allow corruption and cause social harm.

Mr. Rajesh said that those who used to speak strongly against alcohol are now making it more available and supporting corporate interests. He alleged that the UDF had offered a tax concession which the LDF had refused, leading to a significant loss of revenue to the state.

“Supporting farmers”

He said the LDF had earlier allowed the production of low-alcohol drinks from fruits and vegetables to support farmers, with the tax set at the same rate as wine to create a market for farm produce.

He claimed that the new policy has reduced the tax on alcoholic beverages to 120% for products with an alcohol content of up to 10% and 175% for products with an alcohol content of up to 20%.

According to Mr. Rajesh, only one corporate was seeking the concession and this policy would help it get a large market. He described the products as “ready-to-drink” alcoholic beverages available through Kerala State Beverages Corporation outlets. “This will make alcohol more affordable for consumers,” he said.

Published – 20 Jun 2026 20:12 IST