Liquor Set To Get Costlier In Karnataka As Govt Hikes Tax On Alcohol

Liquor is set to become costlier in Karnataka as the Congress government proposed to increase additional excise duty (AED) on Indian Made Foreign Liquor (IMFL) by 20 per cent on Friday.

The state government on Friday proposed to hike additional excise duty in the 2023-24 budget presented by Chief Minister Siddaramaiah in the Legislative Assembly.

"Even after the increase in excise rates, the price of liquor in our state would be lower when compared to the neighbouring states," the Chief Minister said in the budget speech.

The additional excise duty on beer has also been increased to 185 per cent from 175 per cent, according to a report in Deccan Herald.

With these hikes and effective enforcement and regulatory measures, the revenue collection target for the Excise Department for the year 2023-24 is fixed at Rs 36,000 crore, Siddaramaiah added.

Siddaramaiah presented his 14th budget (and seventh as the CM of the state) on Friday. Seeking to highlight the Congress party's poll promises, he said approximately Rs 52,000 crore would be spent annually for the five key poll 'guarantees' and it is expected to benefit 1.3 crore families.

Presenting the 2023-2024 budget, with an outlay of over Rs 3.27 lakh crore, in the Legislative Assembly, he said through the five 'guarantees' (poll promises), the government will be providing an average additional financial assistance of Rs 4,000 to Rs 5,000 a month to each household.

Meanwhile, as the budget session gets going from Tuesday following the Governor's address, the BJP is yet to pick its leader in the Assembly, with its central leaders weighing their options.

Earlier in the month of February Former Karnataka Chief Minister Basavaraj Bommai presented the State Budget for the financial year 2023-24.