High-end liquor to cost more

High-end spirits will cost more as the State has proposed to increase the rate of additional excise duty in the range of six to 20 per cent across 17 slabs.

The government intends to achieve the target of excise revenue of Rs 15,200 crore for the year 2015-16 by increasing the rate of additional excise duty.

A senior official from the Excise Department said the increase in the additional excise duty will be more on costly liquor brands – between 15-20 per cent. “Ultimately, Karnataka State Beverages Corporation Ltd will fix the additional duty across the slabs.

The price of expensive alcohol brands will go up anywhere between 15 per cent and 20 per cent – approximately Rs 1000 to Rs 2,000 per bottle. Similarly, there will be a slight increase of 6-10 per cent on low-priced liquor brands, an increase of Rs 6-10 on each bottle. A bottle contains 720ml of liquor,” an official said. The government has also proposed to formulate a new Karasamadhana scheme to collect arrears related to toddy and arrack.

The government had earlier introduced three Karasamadhana schemes in 2002, 2006 and 2010 to liquidate the excise arrears pending since 1946.

Under the new scheme, those who pay the principal amount in respect of arrack or toddy rentals will be given relief on interest dues, the chief minister announced.