JOIN USCoronavirus lockdown: Liquor to get costlier as govt hikes excise duty in Karnataka
Two days after allowing retail liquor sale, the state government on Wednesday hiked excise duty by 11% points, which will make citizens cough up more money for their drinks.
The hike is applicable to brandy, whisky, gin and rum, but not to beer, wine, toddy and feni. The hike will translate into a drinker paying Rs 5 more for a quarter (180 ml), according to sources.
“The hike will come into effect in a couple of days as new labels need to be stuck (on liquor bottles and covers),” Chief Minister B S Yediyurappa said.
In all, the excise duty is now 17%, including a 6% hike that was announced in the 2020-21 Budget. Seen as a resource mobilisation measure, the government expects to mop up Rs 2,200 crore “in an ideal situation”.
Officials in the Finance department defended the hike, calling it “nominal” compared with the 70% ‘special corona fee’ on alcohol levied by the Delhi government.
Karnataka allowed retail sale of liquor from May 4 after a gap of 42 days. Retail outlets opened to long queues and liquor worth Rs 473.6 crore was sold in just three days. Sales clocked Rs 97 crore on Monday, Rs 197 crore on Tuesday and Rs 231.6 crore on Wednesday.
Yediyurappa also defended the decision to allow sale of liquor. There is criticism from some quarters that no preparation was done before allowing sales to resume. “When there are people to drink, what preparation is needed?” the CM laughed it off.