Kerala Government Cuts Excise Tax on Low‑Alcohol Drinks

The Congress‑led coalition in Kerala announced a reduction of the excise duty on low‑alcohol beverages from 251 % to 121 %. The measure, signed by Chief Minister V. D. Satheesan on 26 June, is part of the new state budget submitted on 19 June. Opposition parties accused the government of favouring multinational alcohol firms, claiming the cut will boost consumption among youth and women and divert attention from pending welfare projects.

Supporters argue the lower tax will increase revenue and stimulate the local market, while critics say it primarily benefits manufacturers. The proposal has sparked sharp political debate ahead of the legislative session.