Kerala cuts low alcohol tax, M.B. Rajesh warns ₹600cr loss
Kerala just slashed sales tax on low-alcohol liquor, and it's causing a big stir in politics.
The new budget sets taxes at 120% for drinks with 0.5% to 10% alcohol and 175% for those with above 10% up to 20% alcohol, down from the old rate of 251%.
Former excise minister M.B. Rajesh says this move reeks of corruption and could cost the state ₹600 crore each year.
Kerala opposition: tax undermines addiction fight
Opposition leaders are calling out the government, saying this change goes against promises to fight alcohol dependency.
They argue it favors spirit-based drinks over local fruit wines, which were taxed less before.
Kerala may rethink alcohol policy
With protests brewing, Kerala's policy future is up in the air.
The government may need to rethink its plan as concerns grow about health impacts and lost revenue, plus bigger questions about how Kerala handles alcohol laws moving forward.