Indian-made liquor to cost more in Karnataka as excise duty hiked

Siddaramaiah said that the hike is hoped to enable the Excise Department to mop up Rs 18,750 crore in the next fiscal.

Published: 16th February 2018 08:10 PM  |   Last Updated: 16th February 2018 08:10 PM   |  A+A-

Image for representational purpose only (File | EPS)


BENGALURU:  Indian-made liquor (IML) in Karnataka would cost more from April 1 with Chief Minister Siddaramaiah proposing an 8 per cent increase in additional excise duty in the budget for 2018-19 presented on Friday.

"I propose to increase the additional excise duty by 8 per cent on IML in different categories for mobilising additional resources," said Siddaramaiah, while presenting a vote-on-account budget in view of the upcoming assembly elections.

He said that the hike is hoped to enable the Excise Department to mop up Rs 18,750 crore in the next fiscal.

The department has collected Rs 14,572 crore as excise duty in the first 10 months (April-January) of 2017-18.

"As 3,000 excise licenses of retail outlets were not renewed on the Supreme Court directive to remove shops located on national highways, the department is expected to collect Rs 17,600 crore from liquor sales as against Rs 18,050 crore target set for fiscal 2017-18," said Siddaramaiah, who holds the finance portfolio, in his two-hour-long budget speech in Kannada.

Barring the hike in liquor price, the Chief Minister has not proposed additional tax or duty hike in the sixth and last budget he presented during his five-year tenure.


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