Karnataka govt proposes increases in excise duty on IMFL

Tipplers would have to shell out more in Karnataka as the government today announced an increase in excise duty on liquor by eight percent in the budget for 2018-19.

"I propose to increase the existing rates of additional excise duty on IMFL by eight percent from the second slab to 18th slab," Chief Minister Siddaramaiah said presenting the budget in the legislative assembly.

With effective enforcement and regulatory measures, the department would be achieving the target of Rs 18,750 cores fixed for the 2018-19 financial year, Siddaramaiah said presenting his record 13th state budget in his more than 35-year-long political career.

He said the government had fixed a revenue target of Rs 18,050 crore for the excise department for 2017-18, however, at the end of January, Rs 14,572 crore has been collected.

He said due to the Supreme Court Order regarding the location of shops on highways, during July, August and September, more than 3,000 excise licenses were affected and were not renewed and closed.

"The apex court order was implemented and such non-renewed and closed licences were renewed in the subsequent months. For this reason, we expect to mobilise revenue of Rs 17,600 crore for the current financial year," he said.

The government in the last budget too had increased the additional excise duty on liquor to 21 percent from 18 percent, while abolishing VAT of 5.5 percent on beer, wine and hard liquors, which led to an increase in the price of liquor between four percent and 12 percent.