Daijiworld Media Network - Bengaluru (SP)

Bengaluru, May 7: After a lockdown of 43 days, liquor shops are now open. The liquor lovers have been trying to make maximum purchases depending upon their economic status. The government which is cash-strapped, has affected considerable hike in the excise duty on liquor. It has to be seen whether the price increase in liquor will dampen the spirits of the liquor lovers.

The quantum of hike was quite unexpected as the government had already announced a six percent hike in excise duty on liquor in the budget. Now it has levied what is known as the 'COVID - 19 Cess' that is effective from today and has been reflecting on the price of liquor. With the 11 percent hiked now and six percent proposed in the budget, liquor prices have gone up by a whopping 17 percent.

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The increase in liquor prices has not been uniform. Price has been fixed on the basis of brands. Price of top end brands have gone up by as high as 25 percent. Liquor in the middle class have seen 21 percent duty while the cheap liquors have been levied a 17 percent increase. However, this hike is not applicable to beer, fenny, wine and Nira.

The excise department hopes to get additional income of Rs 2,530 crore through this move. Excise commissioner Yashvant V, said that the state government is expecting to collect the planned amount of Rs 1,610 crore for its corona management package. He said that the current increase is applicable even for indigenously made liquor. "Seventeen percent hike is applicable for liquor priced at up to Rs 599, 21 percent between Rs 600 and 1,199, and 25 percent for liquor costing above Rs 1,200," he clarified. The total income from the excise department as a whole this year has been put at Rs 22,700 crore.

It is said that the government has got income of Rs 473 crore during the three days since lockdown was opened. Liquor valued at Rs 231 crore was sold on the third day as compared to Rs 45 crore on first day and Rs 197 crore on the second.