Kerala CM Satheesan: tax fixed, not sale — targets Left govt on low-alcohol row
Synopsis
Kerala CM Satheesan tried to close down the low-alcohol liquor row with a simple line — tax fixed, sale not decided — then immediately turned the controversy back on the Left, presenting documents to argue it was the Pinarayi Vijayan government that first moved to introduce such beverages, only to be stopped by elections.
Key Takeaways
Satheesan clarified on 24 June that only the tax structure for low-alcohol beverages has been notified — no political decision on permitting sales has been taken.
The final call will be made after internal deliberations within the United Democratic Front (UDF) coalition.
Satheesan alleged the previous Pinarayi Vijayan government first initiated steps to introduce low-alcohol liquor, with then Excise Minister M.V.
Govindan reportedly directing officials to define such beverages within six months of assuming office.
The LDF government also reportedly amended foreign liquor rules and fixed taxes sought by Bacardi ; the proposal lapsed only due to elections.
Foreign Made Foreign Liquor with 40–60% alcohol content was taxed at just 78% in 2018–19 under the Left, rising to 115% only in 2023 .
The Kerala Assembly passed the revised Budget and adjourned sine-die till Monday .
Kerala Chief Minister V.D. Satheesan on Wednesday, 24 June clarified in the state Assembly that the government had only notified a tax structure for low-alcohol beverages and had not yet taken a political decision to permit their sale in Kerala. The clarification, made during the Budget debate in Thiruvananthapuram, sought to defuse a controversy that had become one of the most contentious aspects of last week's Budget.
What the Government Said
Replying to the Budget debate, Satheesan stated that the question of allowing low-alcohol liquor sales would first be deliberated within the United Democratic Front (UDF) coalition before any final call is taken. He was unambiguous: if the UDF decides against introduction, the beverages will not be sold in the state. If the coalition approves, the already-notified tax rates will come into force.
The proposal had drawn sharp criticism from opposition parties and sections within the ruling alliance itself, making it one of the Budget's most debated provisions.
Satheesan's Counterattack on the Left
Having sought to contain the controversy, the Chief Minister launched a pointed counteroffensive against the previous Left Democratic Front (LDF) government, presenting documents in the House to back his claims.
Satheesan alleged that it was the second Pinarayi Vijayan government that had first moved to introduce low-alcohol liquor in Kerala. According to him, within six months of assuming office, the then Excise Minister M.V. Govindan had reportedly directed officials to draft a definition for low-alcohol beverages.
The previous LDF government subsequently amended foreign liquor rules and completed procedures to fix taxes as sought by multinational liquor company Bacardi, Satheesan added. The proposal remained unimplemented only because elections intervened before it could be acted upon.
Allegations Over Premium Liquor Tax Rates
Satheesan also levelled a pointed question at the previous administration, asking whether it had fixed lower taxes on premium foreign liquor brands such as Chivas Regal and Johnnie Walker after receiving favours from the companies — an allegation the Left has not yet formally responded to.
He further criticised the LDF's tax structure, noting that Foreign Made Foreign Liquor (FMFL) products with 40–60 per cent alcohol content were taxed at just 78 per cent during 2018–19, a rate that was only raised to 115 per cent in 2023.
Assembly Adjourns Sine-Die
The revised Budget was passed at the conclusion of the session. The Assembly was subsequently adjourned sine-die till Monday. With the UDF consultation on low-alcohol beverages yet to conclude, the political debate over the proposal is unlikely to subside in the days ahead.
Point of View
Counterattack second — is politically shrewd but leaves the core question unanswered: will the UDF actually permit low-alcohol liquor sales? By framing the Left as the original architect of the policy, he neutralises the opposition's moral high ground, but the tactic also signals that the UDF itself is divided. The Bacardi allegation and the Chivas Regal-Johnnie Walker question are serious enough to demand a formal response from the Left — mainstream coverage has largely missed how much this shifts the burden of proof. If the UDF ultimately drops the proposal, Satheesan can claim principled restraint; if it proceeds, the Left's own groundwork becomes the political cover. Either way, Kerala's liquor policy is being made through budget footnotes and coalition corridors, not transparent public deliberation.
NationPress
24 Jun 2026
Frequently Asked Questions
What did Kerala CM Satheesan clarify about low-alcohol liquor in the Assembly?
Chief Minister V.D. Satheesan clarified on 24 June that the state government has only fixed the tax structure for low-alcohol beverages — it has not yet taken a political decision to permit their sale. The final call will be made after discussions within the UDF coalition.
Will low-alcohol beverages be sold in Kerala?
That has not been decided yet. Satheesan stated that if the UDF coalition decides against it, the beverages will not be sold. Only if the coalition approves will the already-notified tax rates come into force.
What did Satheesan allege about the previous Left government and low-alcohol liquor?
Satheesan alleged, presenting documents in the Assembly, that the second Pinarayi Vijayan government had first initiated steps to introduce low-alcohol liquor in Kerala. He said then Excise Minister M.V. Govindan reportedly directed officials to define such beverages, and the LDF government later amended foreign liquor rules and fixed taxes sought by Bacardi — a process cut short only by elections.
What is the controversy over premium liquor tax rates under the Left?
Satheesan alleged that Foreign Made Foreign Liquor products with 40–60% alcohol content were taxed at just 78% during 2018–19 under the Left government, only rising to 115% in 2023. He also asked whether lower taxes were fixed on brands like Chivas Regal and Johnnie Walker after the companies provided favours — an allegation the Left has not formally addressed.
What happened in the Kerala Assembly after the Budget debate?
The revised Budget was passed at the end of the session. The Kerala Assembly was then adjourned sine-die till Monday, 30 June.
