THIRUVANANTHAPURAM: Amidst a boycott by the opposition LDF, the state assembly on Wednesday passed the Finance Bill, which includes a controversial provision to reduce the tax on low-alcohol beverages.
Defending the legislation, Chief Minister V D Satheesan stated that the entire state, rather than just the UDF, should openly discuss these provisions, adding that the new tax structure would prevail once the policy receives widespread approval.
He criticised the opposition for manufacturing a controversy that takes the “grace” off the government. The new tax introduced in this budget will come into effect once it’s notified.
Satheesan invoked decisions made by the previous LDF administration to dismiss concerns that the tax cut would spur higher alcohol consumption. He traced the roots of the low-strength alcohol policy back to November 16, 2021, when current CPM state secretary M V Govindan held the excise portfolio.
A committee appointed under that tenure had actively promoted low-strength alcohol. Lowering the tax on these beverages, Satheesan argued, is a public health strategy aimed at phasing out strong liquor, which significantly drives up morbidity rates.
Earlier in the day, the house witnessed stormy scenes during the budget discussions. Former finance minister K N Balagopal raised a point of order, alleging “mystery” in the bill’s introduction without following procedural rules.
He maintained that no bill involving tax rates could be debated without first being vetted by the Subject Committee. Backing the protest, Leader of the Opposition Pinarayi Vijayan accused the government of “smuggling” the bill into the day’s legislative schedule.
The chief minister dismantled these arguments, stating that the bill’s insertion — specifically Sections 3 and 5 — was approved via a routine rearrangement of business by the Business Advisory Committee (BAC), which includes opposition representation.
“The opposition’s charge on the legality of the bill will not stand. I am amazed that the Leader of Opposition was the chief minister for the last 10 years without knowing that tax considerations in the budget would come in the finance bill,” Satheesan said. To prove his point, he listed past finance bills piloted by Balagopal himself, including one in February 2024, that bypassed the subject committee entirely.
Satheesan also took a dig at Pinarayi’s allegation that the tax cut was designed to favour liquor lobbies, contrasting it with the LDF’s promotion of ‘horti-wine’ for cooperatives.
CM announces 100-day action plan
T’Puram: Chief Minister V D Satheesan on Wednesday announced the first 100-day action plan of the UDF-led government. A total of 541 programmes have been included in the 100-day action plan. Satheesan said progress will be reviewed every 20 days. A dashboard shall be kept at the chief minister’s office to monitor the progress. He also stressed on the time bound implantation of projects.
Speaker lauds 7 ministers for answering all queries
T’Puram: Wrapping up the first session of the 16th Kerala Assembly, Speaker Thiruvanchoor Radhakrishnan appreciated seven ministers — Anoop Jacob, Sunny Joseph, K A Thulasi, Shibu Baby John, Mons Joseph, A P Anilkumar and Bindhu Krishna — for providing answers to all questions formally raised to them in the assembly. As many as 18 calling attention notices were served, and 83 submissions were raised in the session, to which the ministers concerned responded.
