Karnataka Budget 2023: Liquor Excise Duty Hiked By 20%

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Karnataka Budget 2023: In the recently announced Karnataka Budget for 2023-24, Chief Minister Siddaramaiah revealed a significant 20% hike in excise duty on liquor. This decision will go into effect from July 1, 2023, impacting the sale and consumption of alcoholic beverages in the state.

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Karnataka Budget 2023 : Excise Duty Hike on Liquor

The excise duty on Indian Made Foreign Liquor (IMFL) will see a substantial increase from the current rate of 350 per proof litre to 420 per proof litre. Additionally, the excise duty on beer will rise from 175 per litre to 210 per litre.

Revenue Generation and Development Projects

The hike in excise duty is expected to generate an additional revenue of Rs 2,000 crore for the state government. Liquor sales play a crucial role in contributing to the state’s revenue stream, making it a significant source of income. Chief Minister Siddaramaiah stated that the increased revenue would be utilized to fund various development projects in the state, addressing the growing financial requirements of the government.

Mixed Public Reactions

The announcement of the excise duty hike has sparked mixed reactions among the public. Some individuals welcome the move, believing that it will act as a deterrent to excessive alcohol consumption in the state. On the other hand, critics argue that the hike will disproportionately affect the economically disadvantaged sections of society, making liquor more expensive and placing an additional burden on the poor.

Revenue Generation Measures

The increase in excise duty is part of a broader strategy employed by the state government to generate additional revenue. In recent months, the government has also implemented tax hikes on petrol, diesel, and other commodities to meet its fiscal targets.

Impact on Liquor Consumption

The effects of the excise duty hike on liquor consumption in the state are yet to be determined. The decision is likely to influence consumer behavior, potentially leading to changes in consumption patterns. However, the full extent of its impact will be unveiled over time.

Conclusion

The Karnataka Budget 2023-24’s decision to increase the excise duty on liquor by 20% reflects the state government’s efforts to augment revenue sources. While the move has received both support and criticism from the public, it serves as a critical measure to address the state’s financial requirements and support various development projects. The subsequent impact on liquor consumption and the overall economy will be closely monitored as the excise duty hike comes into effect.