Karnataka hikes excise duty on liquor by 11 percent

Karnataka government on Wednesday hiked excise duty on liquor by 11 per cent to mop up revenues, two day after allowing its sale, following easing of COVID-19 induced lockdown.

This hike is in dition to six per cent that was anunced in budget.

"Yes, this 11 per cent increase in excise duty is in dition to six per cent anunced in budget," Chief Minister B S Yediyurappa told reporters here.

According to sources, hike will translate into a consumer paying Rs five more for an 180 ml bottle of liquor.

hike is applicable on brandy, whisky, gin and rum, but t to beer, wine, toddy and feni, y said.

government h allowed CL-2 (retail shops) and CL-11C (state-run retail shops such as MSIL) to sell liquor between 9 am and 7 pm only in areas that are outside COVID-19 containment zones from May 4.

third day of liquor sales in state on Wednesday after easing of lockdown curbs Rs 231. 6 crore worth spirits were sold.

According to top Excise Department officials, 39 lakh litres of Indian-me liquor worth Rs 216 crore and 7 lakh litres of beer worth Rs 15.6 crore was sold on Wednesday.

On first two days- Monday and Tuesday, Rs 45 crore and Rs 197 crore worth liquor was sold respectively.

Responding to criticism by certain sections, claiming lack of preparation before allowing liquor sale, Yediyurappa with a laugh said, "When re are people to drink, what preparation is needed?

State Excise Minister H Nsh h recently pegged losses at Rs 60 crore per day because of closure of liquor shops due to over 40 day lockdown.

With excise alone accounting for about 18 per cent of Karnataka's own tax revenue, move is aimed at improving its precarious finances that has been furr affected due to lockdown.

In 2020-21 budget, government h increased ditional Excise Duty on IML (Indian Me Liquor) by six per cent across all 18 slabs and h fixed excise department's revenue target at Rs 22,700 crore for 2020-21 fiscal.