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Kerala's IUML Balances Opposition to Alcohol with Tax Policy Support

India 02.07.2026
Source: www.indiatoday.in
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The Indian Union Muslim League (IUML) in Kerala has decided to support a government tax cut on low-alcohol beverages despite its general opposition to alcohol. The decision aims to maintain coalition unity within the state's ruling alliance.

The Indian Union Muslim League (IUML), a key partner in Kerala's ruling United Democratic Front (UDF), has announced its support for the state government's proposal to reduce taxes on low-alcohol beverages, despite its longstanding opposition to alcohol consumption. This decision reflects the party's commitment to preserving unity within the coalition government.

Kerala's Local Self Government Minister, KM Shaji, confirmed the IUML's stance at a press conference, stating that while the party opposes all forms of liquor, it will respect the decision made by the Kerala cabinet. The cabinet's proposal aims to lower the sales tax on beverages containing up to 20 per cent alcohol, a move that has sparked significant debate in the state.

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The proposed changes suggest that drinks with an alcohol content of 0.5 to 10 per cent would incur a 120 per cent tax, while those with 10 to 20 per cent alcohol would be taxed at 175 per cent, compared to the current 251 per cent tax on most alcoholic products. The government argues that this adjustment is intended to promote lower-alcohol alternatives to more potent liquors, adhering to a category recognized under the previous Left Democratic Front (LDF) government's excise policy.

Critics of the proposal, including opposition parties and religious organizations, have expressed concerns that reduced taxes on low-alcohol drinks might encourage alcohol consumption, particularly among the youth. The LDF has criticized the tax reduction as a "Bacardi tax," suggesting it could disproportionately benefit major liquor companies.

In response to public protests, the Kerala government announced that the tax changes would only be implemented following further consultations. Chief Minister VD Satheesan's announcement of the tax proposal had initially triggered a heated public discourse.

IUML's support for the tax policy underscores the party's strategy to maintain the stability of the coalition government. Minister Shaji emphasized that while the party has voiced its dissent, it will not disrupt the alliance, reflecting the IUML's broader electoral mandate and respect for the coalition's majority-backed governance.