THIRUVANANTHAPURAM: The V D Satheesan government has run into its first major controversy over a budget proposal to levy a lower tax on low-alcohol beverages in the state. The proposal was pushed by the finance department, which is under the chief minister, allegedly without taking the Congress leadership and Excise Minister M Liju into confidence.
The opposition, which has already levelled corruption allegations against Satheesan over the move, is expected to raise the issue in the assembly on Monday.
“With a majority of the Congress ministers belonging to the rival faction, Chief Minister Satheesan is taking matters into his own hands. This is a situation in which either Satheesan does not trust his ministers or the ministers do not trust him,” a senior UDF leader said.
Veteran leader and Satheesan confidant V M Sudheeran has also urged the CM to reconsider the proposal. It has triggered concern among Christian groups and Muslim organisations. Amid the questions about a shift in UDF’s stated position on liquor and public health, the cabinet is expected to discuss the issue in its next meeting.
“If the Congress and IUML leaderships take a tougher stand, the proposal could be dropped,” a minister said. No senior Congress leader or minister has so far publicly supported the proposal, indicating unease surrounding both the proposal and Satheesan’s style of functioning.
However, sources close to the chief minister told TNIE that no new policy change has been announced in the budget.
“The previous LDF government had already amended the Foreign Liquor Rules and the Abkari Act to grant licences for the production of low-alcohol beverages. The finance department has merely fixed the tax rate,” a source said.
The opposition and Satheesan’s critics within Congress alleged that although the LDF government had amended the Rules and the Act, it had decided against lowering taxes on low-alcohol beverages after Satheesan, the Leader of Opposition then, accused it of favouring vested interests.