IF the additional excise duty hike proposed by the Excise Department gets the government nod, starting Friday, wine lovers will have to pay at least 233 more for a 750 ml bottle.
The government, on June 22, notified that there will be a 177 per cent increase in excise duty and an additional excise duty on wine that will come into effect from July 1. After grape growers and wineries opposed the steep hike on additional excise tax on fortified wines, the government decided to slash the rates.
Excise Additional Commissioner Vishwaroop A S said they had proposed a hike of 279 per litre, but after growers and others requested, they reduced it to Rs45 per litre. “We have sent the proposal to thegovernment and are expecting approval by next week. However, the new rate will be applicable from Friday (July 1),” he said. “We had last increased the tax about four years back. We have now increased it from Rs29 to Rs45 per litre,” he added.
P L Venkatarama Reddy, president of Karnataka State Wine Producers’ Association said, “With the proposed hike of 745 a litre, customers will have to pay around 233.75 for a 750 ml bottle. Each case contains nine litres of wine in 12 bottles,” he said.
According to Reddy, there are 18 wine manufacturers and more than 15,000 grape ‘growers in Karnataka. “We are the only state to grow blue grapes which are grown on 23,000 acres in Chikkaballapur, more for Devanahalli, Doddaballapur and Kolar. As many as 10,000 tonnes of blue grapes are crushed to make wine,” Venkatarama Reddy said.
“These grapes are available throughout the year. If the government increases tax, it will affect many families,” he said. “We will approach the state government after three months.” he concluded.