Daijiworld Media Network – Bengaluru (MS)
Bengaluru, June 21: Karnataka is set to slash prices of premium brand liquors from July 1, following a government notification in line with Chief Minister Siddaramaiah's budget announcement.
The state government had earlier pledged to align liquor prices with those in neighboring states to curb cross-border purchases. The Excise Department has now issued a notification detailing the revised rates, which will take effect from July 1. The adjustment will see prices of 16 classes of ultra-modern liquor reduced by Rs 100 to Rs 2000 per brand, according to government sources.
High Alcohol Excise Duty (AED) in Karnataka has been a contributing factor to consumers purchasing liquor from neighbouring states at lower prices, resulting in revenue loss for the state. The government's decision to lower AED aims to address this disparity, as explained by an official from the Excise Department.
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A draft notification to amend the Karnataka Excise Rules 1968 has been published, reducing the number of excise tax slabs from 18 to 16. This administrative change is part of the government's strategy to harmonize liquor prices and enhance revenue collection within Karnataka.
Scotch Whisky, for example, currently priced at around Rs 7000 in Karnataka, is considerably cheaper in neighboring states due to lower taxes.