The Federation of Wine Merchants' Association, Karnataka, has opposed the proposed hike in the excise duty on Indian made foreign liquor (IMFL). | |
| President of the federation Honnagiri Gowda said here that the state government had issued a notification in this regard. |
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| He said the government's move would hit the IMFL merchants hard and added that it was not in line with the policies of the previous coalition governments, of Dharam Singh and H D Kumaraswamy. |
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| Meharwade said the government could have increased the revenues from excise without hiking the taxes. |
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| "After banning arrack in the state the government had promised to provide good quality liquor at a reasonable price. By reducing taxes it is possible to prevent tax evasion and also check the sale of spurious liquor. There is a hidden agenda in the government's move to hike the taxes and nearly 7,600 licence holders will be adversely affected," he said. |
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| He said the collection of excise from the sale of IMFL and beer had gone up since 1999. He also pointed out that during 2007-2008 (till February-end), the revenue earned was Rs 3,117.53 crore as against Rs 1,799.46 crore in 2006-2007. |
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| "When there has been a considerable increase in the revenues for the state after the ban on arrack, there was no need to hike the taxes on IMFL. The government would earn more revenues if the excise department manages to check the unauthorised use of spirit and molasses," Meharwarde said. |
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| The federation is planning to take up the issue with the governor. |
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