Overview
- The Kerala Assembly passed the Finance Bill on July 1 after the Opposition Left Democratic Front staged a boycott in protest of how the measure was taken up.
- The bill creates a new tax category for beverages up to 20% alcohol with rates set at 120% for 0.5–10% ABV and 175% for above 10%–20% ABV.
- The revised rates do not take effect until the government issues a notification in the official gazette and the state can still choose not to permit sales under a separate liquor-policy decision.
- Opposition leader Pinarayi Vijayan says the change was rushed to favour private liquor firms and to avoid Subject Committee scrutiny while the IUML has registered internal dissent but said it will back the cabinet decision.
- Religious groups and public-health critics warn the cut could lower prices and widen availability if sales are approved, even as the government cites earlier expert panels that recommended encouraging lower-alcohol alternatives.