Shortage of funds drives K’taka govt. to increase taxes on alcohol by 6%

The Karnataka government on Thursday increased the excise duty on liquor by 6% to mitigate the shortage of funds in the state.

The Karnataka government on Thursday increased the excise duty on liquor by 6% to handle the shortage of funds in the state. The state is currently facing an monetary shortage due pending payments and slashing of the state’s share under the 15th Finance Commission calculations.

“I propose to increase the existing rates of additional excise duty by 6% across all 18 slabs ….” BS Yediyurappa said while presenting the state budget. As one of the biggest revenue sources for the state, the liquor hike is likely to impact overall growth of the sector, opposition leaders say.

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