Hike in Liquor Prices to Fetch Rs 567 Cr Revenue to Exchequer

From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Apr 11: Tipplers beware. For those of the tipplers who have not yet felt the pinch or rather a hole in their wallets, the B S Yeddyurappa-led BJP regime has already hiked the liquor prices in three category slabs by 10 per cent, 15 per cent and 20 per cent respectively from April 1.

The hike in the liquor prices, which came into effect from All Fool’s Day itself following the start of the new financial year of 2011-12, even though the Excise Year in the State commences from July 1, is expected to enrich the State coffers by Rs 567 crore during this year.

The Yeddyurappa regime has targeted earning an hefty excise revenue of Rs 9,200 crore in the year 2011-12.

Karnataka’s Excise Minister M P Renukacharya said the retail price of a 180-ml bottle of branded liquor in the State will still remain lower than other southern states of Tamil Nadu, Kerala and Andhra Pradesh.

The price of the economy slab has been increased by 10 per cent and the MRP increased for a 180-ml bottle from Rs 53.62 to Rs 57.42. Nearly 80 per cent of the business and revenue comes from this category of liquor.

There is an increase of 15 per cent in the price in the declared price (DP) category from Rs 500 to Rs 999, which meant that the MRP for a 180-ml bottle increased from Rs 59.62 to Rs 89.41, depending on the price category.

The price has been increased by 20 per cent for DP category ranges from 1000 to 7550.

The Excise Department would collect revenue of Rs 7,122.36 crore from IML, Rs 745 crore from beer, Rs 405 crore from license fee, Rs 820 crore from Karnataka State Beverages Corporation Ltd (KSBCL) privilege fee and Rs 107.64 crore from other sources in the year 2011-12, Renukacharya said.

The Department has decided to increase annual fee charged for distilleries and beverages from the existing Rs 30 lac to Rs 60 lac a year and this would fetch additional Rs 30 crore to the State exchequer.

Currently, the revenue generation from this source was Rs 30 crore a year and the hike would come into effect from the beginning of the excise year (July 1), he said.

Renukacharya said the State will be free from illicit liquor manufacturing units in the next three months. The illicit liquor trade has been causing a huge revenue loss to the State exchequer, he said.

He said the department has decided to crackdown existing about 1,000 illicit liquor manufacturing units located across the State in the next three months.

Nearly 1,000 units had been already destroyed in districts such as Belgaum, Bijapur, Bagalkote, Hassan, Chamarajangar and other districts due to the concerted raids carried out by the Department, he said.

Renukacharya, who raided illicit liquor production units in several districts recently, said that he had given a three-month deadline for officials of the Department to take steps to crackdown all spurious liquor manufacturing units in the State.

To check illegal transportation of liquor from neighbouring states, the department has decided to write to Chief Ministers and Excise Ministers of the states concerned and seek their cooperation.

Liquor was being transported illegally from Goa, Maharashtra and Andhra Pradesh to the State. Several people were indulged in the illicit liquor trade from Hyderabad to Hyderabad-Karnataka districts, he said.

Plans have been chalked out plans to modernise the department by providing wireless and GPS facilities in addition to computerisation up to the taluk level, he added.