Consumption of liquor in Karnataka grown by 77% in 11 yrs

The consumption of liquor in Karnataka has grown by 77% and the excise revenue by a staggering 273% in the past 11 years.

The sale of alcohol, the Indian Made Liquor (IML) and beer, surged from 468.8 lakh boxes in 2007-08 to 830.6 lakh boxes in 2017-18. While revenue raised from Rs 4,812 crore in 2007-08 to Rs 17,948.5 crore in 2017-18. This shows that sales or consumption of liquor reported a 7% annual average growth in the 11 years, and revenue 25%.

The excise duty on liquor has remained constant on alcohol with just one hike of Rs 5 in 2016-17, which was only for IML.

Presently, a litre of beer attracts Rs 10 as excise duty and 150% of AED on the declared price. While a litre of IML attracts Rs 50 as excise duty and AED in the range of Rs 144 and Rs 2,246.

SL Rajendra Prasad, Joint Commissioner of Excise, said, "The excise department is expected to raise revenue and it is achieved through various duties imposed on products. Also, the target set for the excise department is increased every year; the past four targets have been at least Rs 800 crore more than the previous year. For the current year, the target was revised twice: Siddaramaiah increased it to Rs 18,750 crore in February, and it was subsequently revised to Rs 19,750 crore in July."