Kasaragod: Congress leader and Kasaragod MP Rajmohan Unnithan on Thursday said the state government's proposal to slash taxes on low-alcohol liquor could not be implemented without the approval of the United Democratic Front (UDF), upping the ante on the resistance within the coalition to the proposal.

Unnithan said the issue had not been discussed within the UDF and that the coalition's views would have to be taken into account before any decision was finalised. "I think the Chief Minister has understood the opposition the proposal has generated," he told reporters in Kasaragod.

In the revised 2026-2027 Budget, Chief Minister V D Satheesan proposed to reduce sales tax on liquor containing up to 20%, classified as low-alcohol liquor. Most Indian-made foreign liquor (IMFL) sold in Kerala attracts a sales tax of 251%. Under the new proposal, products containing between 0.5% and 10% alcohol would be taxed at 120%, while beverages containing more than 10% and up to 20% alcohol would attract a tax of 175%.

Opposition parties, sections within the UDF, and religious leaders have questioned the move, arguing that it would make certain categories of alcohol significantly cheaper and more accessible, while sending mixed signals about the state's liquor policy.

Unnithan said the government should consider public concerns and the possible social consequences before proceeding with such a measure. He also criticised the Union government's PM SHRI school scheme, describing it as potentially harmful to Kerala's education sector and future generations of students. 

"The PM SHRI scheme is dangerous for Kerala's education system," he said, alleging that the Left government had initially attempted to implement the programme in the state. A subcommittee constituted to examine the issue would study all aspects before arriving at a decision, he said.