New Delhi/Thiruvananthapuram | CPI(M) state secretary M V Govindan on Friday rejected the allegation by the ruling UDF that the previous LDF government had initiated steps to reduce tax on low-alcohol beverages during his tenure as Excise Minister.
Speaking to reporters in New Delhi amid the controversy over the UDF government's decision to reduce tax on low-alcohol beverages, Govindan said that as Excise Minister in the previous LDF government, he had only sought a report to define what constituted a low-alcohol beverage.
"There had been a long-standing demand, even before the UDF came to power, for the production of low-alcohol beverages. We had planned that such beverages should be produced in Kerala," he said.
Govindan said the proposal was aimed at utilising surplus fruits, vegetables and grains that often went to waste by converting them into low-alcohol beverages, similar to feni produced in Goa, with the objective of helping farmers.
He said cashew apples were available in abundance in north Kerala and a cooperative society had approached the government with a proposal to manufacture low-alcohol beverages.
"The LDF government and the Excise Department considered the proposal. At that time, liquor manufacturers had also submitted representations. Based on those requests, I sought a report defining low-alcohol beverages. How can merely seeking a definition be interpreted as an attempt to reduce tax," he asked.
Govindan said he had sought the report on November 29, 2021.
According to him, the matter was referred to the Kerala Assembly Subject Committee on January 9, 2022, and the committee, comprising members from both the LDF and the UDF, approved it.
He said the notification was published in the official gazette on January 11, 2023, and the file was processed on March 23, 2023.
"Even after completing these procedures, the LDF government did not take any further action. We neither discussed reducing tax on low-alcohol beverages nor took any decision to permit their sale," he said.
Govindan alleged that although the file remained pending for nearly three-and-a-half years without any action, it reached Chief Minister V D Satheesan within three days of the UDF government assuming office.
He claimed the UDF government's decision to reduce tax on low-alcohol beverages would result in a revenue loss of around Rs 600 crore to the state exchequer.
"The file remained with Satheesan for 24 days before he presented the budget. He did not discuss the matter either in the UDF or in the Congress. Why was such a decision included in the budget without any discussion," Govindan asked.
Alleging that there was a "deal" behind the decision, he said the UDF was trying to shift the blame onto the LDF.
"We never approved the sale of low-alcohol beverages," he said.
