Low alcoholic drinks: Pinarayi alleges Congress deal with liquor major Bacardi, chaos in Assembly

The Opposition LDF on Tuesday attempted to disrupt Assembly proceedings and then walked out over the Budget proposal to fix a low tax rate for low-alcoholic beverages. Amid the chaos, Opposition Leader Pinarayi Vijayan alleged that the move was intended to benefit liquor major Bacardi.

The House descended into pandemonium after Speaker Thiruvanchoor Radhakrishnan refused permission for an adjournment motion moved by former Finance Minister K N Balagopal on the issue.

"There is no way I can allow the Rule 50 notice (adjournment motion). There will be a clarity and finality to the budget proposals only after the discussions that will he held in the House till tomorrow. There will be enough opportunities for you to raise this issue during the discussions that will continue today and tomorrow," the Speaker said. The three-day discussion on the Budget had begun on June 22.

Further, he said that a ruling by former Speaker Varkala Radhakrishnan in 1989 had refused permission for Rule 50 in such contexts. "I cannot allow the motion," he said.

Balagopal said that the motion was addressed to the excise minister. "The proposal is part of efforts to drown Kerala in liquor," he said. When the ruling benches tried to shout him down, Balagopal shot back: "What is it that you fear?"

While the Speaker once again made an appeal for calm and cooperation, Opposition Leader Pinarayi Vijayan got up. "There was no Finance Bill when the Budget schedule was introduced. This indicates that the government had not thought of tax proposals at that stage. But then, all of a sudden, a policy measure that will allow a major liquor company to mint money has been sneaked in. It is a serious issue," the opposition leader said.

In Chief Minister V D Satheesan's first budget, a sales tax rate of 120 per cent was fixed for drinks with alcohol content of 0.5% to 10% , and 175 per cent for drinks with alcohol content above 10% and up to 20%.

"251 per cent is the existing tax. A reduction of 131 per cent. For what and for whom," Pinarayi said. "This proposal is not for the good of the public. The beneficiary, as everyone knows, is a liquor company based in Karnataka. Clearly, the proposal has come as a favour to the private multinational Bacardi. This is a grave issue. This is an attempt to make liquor as easily available as soft drinks in Kerala," he said.

When the Speaker once again refused permission, the LDF members trooped to the well of the House, swarmed the Speaker's podium and shouted slogans that were intended to spotlight the infighting within the Congress.

"KC (K C Venugopal) group says that they had no idea of such a move," went one slogan. Another: "The excise minister says his department, too, has not heard of this."

The Speaker, like his predecessor A N Shamseer, went ahead with the day's proceedings. Eventually, the Opposition leader staged a walk out but only after reiterating his allegation. Home Minister Ramesh Chennithala, and after him the CM, objected to this and wanted the Speaker to remove the remarks from the Assembly records. The Speaker said the issue would be examined.