The lockdown and restrictions in movement of people caused a sharp dip of 33.88% in the sale of Indian-made liquor (IML) in Karnataka during the first quarter of 2020-21.
The revenue of the Excise Department saw a decline of 33.22% in the first quarter of the fiscal compared to the same period last year.
Official sources in the department said the revenue collected during April, May and June was ₹3,846.76 crore, as against ₹5,760.14 crore during the same months in 2019-20 — a decline of ₹1,913.18 crore. The first quarter’s revenue collection constituted a mere 16.95% of the total revenue of ₹22,700 crore estimated in the State Budget from excise in 2020-21.
Last year’s first quarter revenue collection (₹5,760.14 crore) constituted 27.49% of the total estimated revenue of ₹20,950 crore for 2019-20.
The sale of IML during the first quarter, up to June-end, was 100.76 lakh case boxes, as against 152.38 lakh case boxes during the same period in 2019 — a decline of 51.62 lakh case boxes, according to officials.
The closure of bars and restaurants since the announcement of the nationwide lockdown on March 25 was a major cause for the decline in liquor sales in the State. Moreover, the fall in the number of tourists to cities such as Bengaluru, Mysuru, and the hill stations and the coastal belt of Karnataka was another factor.
Hike in duty
In the 2020-21 State Budget, Chief Minister B.S. Yediyurappa increased the excise duty on IML by 6% to compensate for the sharp reduction in the State’s share in the Central pool of taxes as well as allocation in the 15th Finance Commission. Because of the increase in excise duty, the Chief Minister had increased the revenue mobilisation target from ₹20,950 crore in 2019-20 to ₹22,700 crore in 2020-21.
