Karnataka Budget: Tax slabs for Indian Made Liquor and beer will be revised, says CM Siddaramaiah

Chief Minister Siddaramaiah with the Budget

Karnataka Chief Minister Siddaramaiah, who also holds Finance portfolio, on February 16 presented the state Budget and said there will be a revision in tax slabs for Indian Made Liquor and beer. This is Siddaramaiah's 15th Budget presentation in the state assembly — his first was in 1995-96 with an outlay of around Rs 12,616 crore.

This will be the second time since the Congress government assumed power in May 2023 that the beer price has seen a revision.

In its first budget after winning the elections, presented on July 7, the Siddaramaiah government had increased the additional excise duty on beer by 20 per cent.

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Up to January 2024, the State Excise Department has collected Rs 28,181 crore in tax revenue. For the fiscal year 2024-25, the revenue collection target for the Excise Department has been set at Rs 38,525 crore, said Siddaramaiah.

Siddaramaiah also said on Friday: "Tourism policy will be revised for 2024-29 to attract more tourists and investors to make full use of the tourism potential of the State. Anjanadri Hills and surrounding areas of Koppal district hold mythological and historical importance, Rs 100 crore will be provided to develop tourism in these areas."

The Karnataka CM also took potshots at Centre for alleged GST shortfall to the tune of over Rs 59,000 crore.

"While introducing Goods and Services Tax, Union Government had assured that there would be growth of 14% and states would be compensated in case of shortage in revenue growth. At a projected growth rate of 14%, it was estimated that the GST tax collection would be Rs 4,92,296 crore from 2017 to 2023-24. However, only Rs 3,26,764 crore GST revenue was collected and against the GST shortfall of Rs 1,65,532 crore, the Central Government had released Rs 1,06,258 crore as compensation to the state. Hence, a loss of Rs 59,274 crore was incurred by the state due to unscientific implementation of GST in the last 7 years," he said.