Former Excise Minister M.B. Rajesh has accused Chief Minister V.D. Satheesan of making misleading statements on the government’s decision to reduce taxes on low-alcohol beverages.

Rejecting Mr. Satheesan’s claim that the move originated during the Left Democratic Front (LDF) government’s tenure, Mr. Rajesh said the LDF government had never considered reducing taxes on alcoholic beverages. He also disputed Mr. Satheesan’s assertion that the file had remained pending for three years without a decision.

“The LDF government never considered a tax reduction on liquor. The claim that the file remained undecided for three years is false,” Mr. Rajesh said.

He also challenged Mr. Satheesan’s remarks on the liquor policy of the erstwhile United Democratic Front (UDF) government led by Oommen Chandy.

Refuting the claim that all bars were shut during that period, Mr. Rajesh said the Oommen Chandy government had initially granted licences to several bars and revoked them only after the bar bribery allegations surfaced.

Mr. Rajesh said 813 beer and wine parlours and 306 Kerala State Beverages Corporation (Bevco) outlets operated during the UDF government’s tenure. He alleged that the cancellation of bar licences was politically motivated and did not curtail liquor sales.

“Though bar licences were cancelled, the establishments continued liquor sales as beer and wine parlours,” he said, alleging that the move had helped the Oommen Chandy government deflect criticism over corruption allegations.

Mr. Rajesh said 896 bar hotels were at present operating in the State and questioned whether the UDF government would support another round of bar closures while defending the Oommen Chandy government’s liquor policy.

He further alleged that the UDF had consistently treated the liquor sector as a source of revenue.

Last week, Mr. Rajesh alleged that the tax reduction on low-alcohol beverages was intended to increase alcohol availability in the State. He also claimed that a Karnataka-based liquor lobby was behind the move and challenged Mr. Satheesan to disclose any links to the decision.

According to Mr. Rajesh, the LDF had permitted the production of low-alcohol beverages only from fruits and agricultural produce, whereas the present policy allowed production using spirit. “This will open the door to corruption and cause social harm,” he warned.