Amid the political row over lowering the sales tax on low-alcoholic beverages, the revised tax rates have been included in the Finance (No. 3) Bill, 2026, which will be introduced in the State Legislative Assembly on July 1.
Section 3 of the Bill says the words ‘low-alcoholic beverages’ is to be inserted after ‘horti-wine’ in the Kerala General Sales Tax Act, 1963. The rates have been pegged at 120% and 175% respectively for alcoholic beverages with alcohol strength ranging from 0.5% v/v (volume by volume) to 10% v/v, and those with strength above 10% v/v and up to 20% v/v. These were the rates announced by Chief Minister V.D. Satheesan in the Revised Budget.
At the same time, the specific amendment will not come into force immediately even if the Bill gets passed. The Bill notes that it will come into force when the government notifies it in the official gazette.
The announcement had kicked up a major political storm with the Opposition Left Democratic Front (LDF) alleging that it promotes alcohol addiction. Following differences of opinion within the UDF as well, Mr. Satheesan had informed the Assembly on Wednesday that a final decision rests with the UDF. Mr. Satheesan had also pointed out that low-alcohol beverages as a new category was notified by the LDF government as part of its 2022-23 liquor policy.
On Friday, Excise Minister M. Liju had said that the sale of low-alcohol beverages would be based on the liquor policy, which is yet to be finalised, and was not a decision that would be implemented immediately.
Published – June 28, 2026 01:03 am IST