Bengaluru: Karnataka saw a 60% dip in sales of Indian Made Liquor (IML) and beer after prices were hiked when record sales were seen on the first three days of reopening retail shops, as per a report.
It declined from Rs 232 crore on May 6 to Rs 61 crore on May 20. The government had increased ad valorem rates by 21%-31% on May 6. This saw prices going up from Rs 50 to Rs 1,000 per bottle, depending on brand. Beer was spared the hike.
According to recent data, 38 lakh litres of IML were sold on May 6 but only 25 lakh litres on May 20.
“The government hiked Additional Excise Duty (AED) on IML anticipating huge revenue but the plan fell flat,” admitted some liquor shop owners.
The state government is worried as revenue collection of the excise department has dipped so much that it could not only miss the monthly average revenue target of Rs 1,900 crore but also fall short of the target by at least Rs 400 crore in May. This is despite pubs, clubs, bars and restaurants being allowed to clear old stock.
Asianet.in/News Desk: Asianet Online