Woah! Karnataka Abolishes VAT On Wine, Beer, Liquor; Caps Movie Tickets At Rs 200

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Karnataka No VAT

At a time when a state like Bihar has banned all types of liquor, there exists state like Karnataka which has made it easier for lovers of alcohol to consume it more.

In one of first such decision in a long time, anywhere in India, Karnataka Govt. has decided to abolish VAT on wine, beer, feni and hard liquor. Besides, excise duty will also be removed for all liquors.

These announcements were made during Karnataka’s budget presentation in the State Assembly.

A direct result of this big step would mean that liquors would now be cheaper by 10-15% on an average, as State administrative fee of Rs 2 per litre of liquor exported and Re 1 per litre of liquor imported would be also removed.

Last year, Govt. of Karnataka had imposed 20% excise duty on the sale of liquor, besides 3% VAT.

Markets, along with fans of liquor rejoiced in the state, as share prices of United Breweries, United Spirits shot up by 2.75%, meanwhile Radico Khaitan and Globus Spirits witnessed an increase of 4% yesterday, during intra-day trading.

Analysts are saying that this step has been taken for increasing revenues via liquor sale, as sales volume would now increase, as alcohol lovers from neighbouring states would also come to Karnataka for buying their favourite liquor. Some analysts are also predicting that this step may backfire, as VAT contributed a major chunk to state revenue.

It is all now boiling down to the equations of volume now.

Movie Tickets Capped At Rs 200 And More Social Welfare

Besides removing VAT on liquor, State Govt. has also decided to cap the price of movie tickets to Rs 200 at every theatre, a decision which has received a mixed response. While some theatres which provide better auditorium, sound system and ambience will feel the pinch, smaller theatres will be benefitted by this decision.

For movies, CM of Karnataka announced a special “Policy for implementation of uniform admission fee in all cinema theatres including multiplexes in the State,”, under which Rs 200 has been fixed for all movie tickets at all locations.

Besides these, Govt. has also announced a budget of Rs 100 crore for opening ‘Namma Canteens’, wherein breakfast, lunch and dinner would be provided for Rs 5 and Rs 10 for all citizens.

Do you support Karnataka’s decision to abolish VAT on liquors? Do let us know by commenting right here!

  1. Mahesh Pai says

    Karnataka Gvt ‘s made big mistake by removing excise and vat on liquors they should also think about people health if liquors become cheaper then people consume it more and more and it create disturbance in society and their family also , the meaning of charging more taxes and duties on liquor and cigarettes so that people will not consume it more because of rate and it is good because these things not good for health. Gvt should also think about peoples welfare.

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