Bengaluru: With a 17 percent increase in taxes, including 6 percent additional excise duty (AED), select liquors would cost more in Karnataka from Thursday, an official said on Wednesday.
“The state Finance Department has increased tax on select liquors by 17 percent, including 11 percent excise duty and 6 percent AED passed in the state budget for fiscal 2020-21 in March to mobilize more revenue,” Deputy Commissioner, Excise, J. Giri said.
As liquor shops reopened on Monday after 40 days of extended lockdown and sales shot up due to huge demand, official sources said the state government does not anticipate fall in consumption, as the hike was modest compared to similar tax hikes in other states.
As the hike applicable only on whisky, brandy, gin, and rum, they will be costly by Rs 5 for a quarter (180 ml) from Thursday when shops open for business.
With only 6 percent AED, beer, wine, feni and toddy, their cost will go marginally.
Demand for liquor remained high for the third consecutive day, as sales increased to Rs 231.6 crore on Wednesday, as customers bought 39 lakh liters of IML and 7 lakh liters of beer against sales of Rs 197 crore on Tuesday and Rs 45 crore on Monday.