Karnataka Budget 2018: In poll year, excise duty on liquor hiked by 8%

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

"I propose to increase the existing rates of additional excise duty on IMFL by eight per cent from 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 187.5 billion fixed for 2018-19 financial year, Siddaramaiah said presenting his record 13th state budget in his more than 35-years of 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 145.7 billion has been collected.

He said due to the Supreme Court Order regarding 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 176 billion 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 per cent from 18 per cent, while abolishing VAT of 5.5 per cent on beer, wine and hard liquors, which led to an increase in the price of liquor between four per cent and 12 per cent.