Chief Minister Siddaramaiah on Friday increased the additional excise duty on Indian-made liquor (IML) by 20% on all slabs. He also increased the additional excise duty on beer from 175% to 185%. They will cost more from August 1.
He also set a target of ₹36,000 crore to the Excise Department, and justified the hike to fund the guarantees. Speaking to presspersons later, he said that despite the hike, the price of liquor would be the lowest among the neighbouring States.
However, Chief Executive Officer of International Spirits and Wines Association of India Nita Kapoor said that 20% hike would make Karnataka the most expensive State for spirits in India. “The State share of taxes at 80% of the MRP has restricted the growth of premium brands in Karnataka and the move will further decline of premiumisation and proliferate informal supply chains,” she said.
