Liquor to cost more in Karnataka with 17% tax hike

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SME Times News Bureau | 07 May, 2020
With 17 per cent increase in taxes, including 6 per cent additional excise duty (AED), select liquors would cost more in Karnataka from Thursday, an official said on Wednesday.

"The state Finance Department has increased tax on select liquors by 17 per cent, including 11 per cent excise duty and 6 per cent AED passed in the state budget for fiscal 2020-21 in March to mobilise more revenue," Deputy Commissioner, Excise, J. Giri told IANS here.

As liquor shops reopened on Monday after 40 days of extended lockdown and sales shot up due to huge demand, official sources said the state government does not anticipate fall in consumption, as the hike was modest compared to similar tax hikes in other states.

As the hike applicable only on whisky, brandy, gin and rum, they will be costly by Rs 5 for a quarter (180 ml) from Thursday when shops open for business.

With only 6 per cent AED, beer, wine, feni and toddy, their cost will go marginally.

Demand for liquor remained high for the third consecutive day, as sales increased to Rs 231.6 crore on Wednesday, as customers bought 39 lakh litres of IML and 7 lakh litres of beer against sales of Rs 197 crore on Tuesday and Rs 45 crore on Monday.