Karnataka Budget: Liquor prices set to soar as CM Siddaramaiah proposes duty hike

    Karnataka Budget

    The Karnataka government has proposed a 20% increase in excise duty on liquor, including beer, in its 2023-24 budget, which is expected to raise prices.

    Liquor prices, including beer, are expected to rise in Karnataka as the state government has put forth a proposal to raise additional excise duty in the 2023-24 budget.

    Chief Minister Siddaramaiah, who also serves as the Finance Minister, presented the budget in the Legislative Assembly on Friday, suggesting a 20% increase in the existing rates of duty on Indian Made Foreign Liquor (IMFL) across all 18 slabs.

    As part of the proposed changes, Chief Minister Siddaramaiah has also recommended an increase in the duty on beer from 175% to 185%. This adjustment would result in a higher tax rate for beer in Karnataka.

    “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.

    “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 ₹36,000 crore”, Siddaramaiah added.

    Presenting the 2023-2024 budget, with an outlay of over ₹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 ₹4,000 to ₹5,000 a month to each household.

    The five ‘guarantees’ related to free bus travel for women, 200 units of free electricity, 10 kilograms of free foodgrains to the poor, ₹2,000 for the woman head of the house and unemployment benefit of up to ₹3,000.

    According to some political analysts, these pre-poll promises found resonance with the electorate leading to the Congress’ resounding victory in the Assembly elections.

    In the polls to the 224-member Assembly, the Congress bagged 135 seats, while the BJP secured 66 and the JD(S) 19.

    Siddaramaiah created a record of sorts by presenting his 14th budget in the Assembly as Finance Minister, surpassing the mark of late Ramakrishna Hegde, a former CM, who had presented 13 budgets.

    (With inputs from PTI)

    Courtesy: mint

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