Excise revenue from liquor sales inKarnatakahas seen a 65% jump over the last five years, increasing from Rs 17,948.5 crore in 2017-18 to Rs 29,600 crore in 2022-23.The revenue is estimated to double by March 2024, given the budgetary target of Rs 36,000 crore from liquor sales, as enumerated in CM Siddaramaiah’s budget proposal.
Revenue from liquor sales over the past decade and-a-half has seen a whopping 600% jump, with the trend likely to continue as successive state governments find tipplers an easy target whenever faced with the challenge of mopping up revenue. In his budget proposal, Siddaramaiah announced a hike of 20% in the additional excise duty levied on liquor to mobilise funds to meetCongress’ five poll guarantees.
The hike, to be effective from next month, is the 11th since 2008 and the eighth in the last ten years. The has hikedAEDby a massive 52% over just three years, apparently to meet a shortfall in revenue generation owing to the pandemic.