Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Feb 8: The state government has decided to hike liquor prices soon. As per the report of an English daily, the government wants to recoup the revenue losses it has suffered due to coronavirus that delivered a deadly blow to economic activities. The government badly needs funds to rejuvenate the financial sector and chief minister Basavaraj Bommai, is facing the tough task of pooling resources for development.

It is said that the Indian Made Liquor and beer prices may attract an additional tax of five to ten percent. The government has set for itself a target of Rs 28,000 crore from the excise department this year. To meet this target, it may increase tax by ten to 15 percent on drinks having alcohol content, officials said.

Last year, the excise tariff on Indian Made Liquor had been increased to 150 percent from 122 percent. In the budget, six percent additional excise tax had been levied. In May 21, a hike of 17 percent was enforced on all liquors except beer and wine. It is said that in this budget, Bommai might enhance excise duty which may come into force from April 1.