Thiruvananthapuram, Jul 1 (PTI) The Opposition LDF on Wednesday boycotted Kerala Assembly proceedings after the Speaker rejected its objection to the government taking up the Kerala Finance Bill—which proposes a sharp cut in taxes on certain liquor products—without referring it to the Subject Committee.

The protest came after Chief Minister V D Satheesan moved the Bill for consideration.

The LDF argued that the Bill should have undergone detailed scrutiny by the Subject Committee before being brought before the House.

Former finance minister K N Balagopal raised a point of order, saying the Bill had been brought "in great haste" and dealt primarily with liquor policy.

"Normally, a Finance Bill of this nature should be referred to the Subject Committee. That did not happen in this case," he said, adding, "almost all the major provisions in it relate to liquor. There are hardly any other significant provisions." He said members had been assured that such an important proposal would be implemented only after detailed discussions, but that commitment had not been honoured.

Balagopal argued that bypassing the committee undermined the legislature's role.

"Bringing this Finance Bill directly before the House without giving the Subject Committee an opportunity to examine it undermines the rights of the legislature. It reflects an approach that discourages discussion rather than encourages it," he said.

He questioned the substance of the Bill, saying it proposed amendments to the Kerala GST Act, including a 120 per cent levy in certain categories, and dealt with a policy that had been under discussion for nearly three years.

According to Balagopal, although the previous LDF government had examined similar proposals, it had consciously decided not to implement them, arguing that any change in excise policy should first be debated at the policy level.

Satheesan rejected the objections, saying all legal and procedural requirements had been followed.

He said the Bill was being taken up on the basis of a report of the Business Advisory Committee approved by the Assembly on June 24, 2026.

"When the House considered and approved the BAC report, not a single amendment was moved. The BAC included party leaders, including the honourable member himself. The decision was taken by the BAC. There was no objection at that stage," Satheesan said.

The CM rejected the Opposition's contention that the Bill should have been referred to the Subject Committee, asking whether the Finance Bill introduced on February 24, when the Left was in power, had been referred to the committee.

"If he wants to make political arguments or level allegations, he is free to do so during the debate on the Bill. But there is no legal basis for the objection he has raised," the CM said.

After the Speaker rejected the procedural objection, Leader of the Opposition Pinarayi Vijayan accused the government of pushing through a major policy change without adequate discussion.

Vijayan said the Opposition had initially agreed to the proposal at the BAC meeting because it had been informed that there would be no major changes to the Bill.

"None of us realised that such an important matter was being brought in this manner," he said. "It was only after we understood the implications that we registered our strong objection." Vijayan said the previous LDF government had only discussed promoting fruit wine made from locally produced agricultural products to benefit farmers and small industries, but had never taken a final decision.

"What is being done is entirely different. Instead of supporting local producers, the government is giving large liquor companies the freedom to market their products by substantially reducing taxes," Vijayan said.

He alleged that the proposed tax reduction exceeded 130 per cent and questioned why the government was insisting on implementing the measure despite the Opposition's objections.

Calling the move "unacceptable", Vijayan announced that the LDF would boycott the Assembly proceedings in protest against both the decision and the manner in which the Finance Bill had been brought before the House. PTI LGK SSK

Subject committee scrutiny of finance bills sparks assembly boycott over liquor tax policy changes. Opposition members in the Kerala Assembly objected to the government moving the Finance Bill directly before the House without first referring it to the Subject Committee. The dispute concerned proposed changes to liquor-related tax policy, including amendments to the Kerala GST framework and a substantial reduction in taxes on certain liquor products. The Chief Minister said all legal and procedural requirements had been followed and that there was no legal basis for the objection, after which the Speaker rejected the point of order and the Opposition boycotted the proceedings.