The Karnataka government has lifted Value Added Tax (VAT) on wine, beer and hard liquor. Chief Minister Siddaramaiah announced this in his budget speech in the Vidhan Sabha today. As per the budget, administrative fee of Rs 2 per litre on export and Re 1 per litre on spirit (excluding ethanol) is set to be withdrawn.
Karnataka has given several sops in its populist budget. The government has also announced free water to slum dwellers. In the same budget, the state government has also allocated Rs 100 crore for setting up of Namma Canteens in Bengaluru where breakfast will be provided for Rs 5 while lunch and dinner for Rs 10.
Agriculture in the state has been allocated Rs 5080 crore while the Anna Bhagya scheme will witness an increase in food grain distribution to 7 kg per person from the current 5 kg. The government has also proposed capping movie ticket prices at Rs 200 at all cinema theatres, including multiplexes.
Last year, the Karnataka Government imposed 20 percent hike in additional excise duty on Indian-made liquor in addition to the VAT of three percent.
The government also said prices of high-end motorbike will rise with the motor vehicle tax being hiked from 12% to 18%. The total expenditure in the budget amounts to around Rs 1.86 lakh crore.