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Karnataka Budget: Windfall for wine, beer and film lovers; CM Siddaramaiah cuts VAT on liquor, caps entry fee in multiplexes at Rs 200

Wine lovers and film buffs in Karnataka have much to cheer about after the state government on Wednesday made liquor cheaper in the state.

Chief minister Siddaramaiah proposed removing the VAT on liquor from April 1 and sought to cap the entry fee in multiplexes at Rs 200 per ticket.

Wine lovers and film buffs in Karnataka have much to cheer about after the state government on Wednesday made liquor cheaper in the state, reports fe Bureau in Bengaluru. Chief minister Siddaramaiah proposed removing the value-added tax (VAT) on liquor from April 1 and sought to cap the entry fee in multiplexes at Rs 200 per ticket.

The government plans to do away with VAT on liquor, beer, feni and wine. Liquor attracted a 5.5% VAT when consumed along with food in bars and restaurants. However, the government has rationalised the tax structure on 17 slabs under which the liquor is sold. As a result, there will be no revenue loss to the state exchequer. The administrative fee of Rs 2 per litre on export and R1 per litre on spirit (excluding ethanol) is also proposed to be withdrawn.

Also read: Karnataka budget: Siddaramaiah doles out sops and goodies; Bengaluru to be made e-vehicle capital of India, 7th Pay Commission report to be implemented

“As a measure of rationalisation, I propose to increase the additional excise duty on the fifth slab (for liquor priced between Rs 600 and Rs 699) and 11th slab (for liquor priced between Rs 1,200 and Rs 1,299) by 6% and on the remaining 15 slabs by 10% and 16%. In view of these changes, VAT on liquor will be removed with effect from April 1, 2017,” the chief minister said.

Movie goers in Bengaluru had been demanding a cap on movie tickets in multiplexes and the latest move comes as a big relief. Some of the multiplexes in Bengaluru charge as much as Rs 500 per ticket during weekends

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