The State government, to increase its revenue, on Wednesday announced a steep hike in the excise duty on Indian-made Liquor (IML), ranging from 17% to 25% in various slabs.
The new excise rates, inclusive of the 6% excise duty hike announced in the Budget, will come into effect from Thursday. Sources said the government would be able to garner ₹2,350 crore with this hike alone, as against losses of ₹2,400 crore to ₹2,500 crore during the lockdown.
The hike came in the midst of high sales of liquor that is being reflected from the stocks being lifted from the Karnataka State Beverages Corporation Ltd. Over the last three days, about ₹450 crore worth of liquor was procured by shops from the corporation.
