Karnataka to ban arrack manufacture, sales
In an obvious ploy to woo the women, particularly in rural areas, the H D Kumaraswamy-led JD(S)-BJP regime has proposed a total ban on arrack manufacture and sales in Karnataka from the ensuing excise year commencing from July.
By TNN |
BANGALORE: In an obvious ploy to woo the women, particularly in rural areas, the H D Kumaraswamy-led JD(S)-BJP regime has proposed a total ban on arrack manufacture and sales in Karnataka from the ensuing excise year commencing from July.
``This is a first step in our ultimate goal of introducing prohibition in the state,’’ declared deputy chief minister cum finance minister B S Yediyurappa, making it clear that the government is not worried about the loss of nearly half the total excise revenue in a year.
Karnataka earns Rs 1,905 crore from arrack sales out of the total budget estimate of Rs 4,100.2 crore from excise for the year 2006-07, with the rest coming from Indian Made Foreign Liquor (IMFL). There are 15,248 licenced arrack vending shops with total sales of 1.5 crore litres a day in the state.
Pointing out that he and the chief minister were determined to curb the menace of drinking, which has ruined families in rural areas, following widespread demands from women in rural areas and heads of various religious Mutts and other organisations, Yediyurappa said the government is hopeful of making a firm committment on banning arrack in the state in the budget for the coming year 2007-08. ``We want a thorough public debate on the issue and evolve a consensus so as to take a final decision,’’ he said.
While the loss of revenue due to banning arrack sales is a major area of concern, resource mobilisation is not the only goal of the government and the likely loss can be made up by tightening the tax collection efforts, plugging loopholes, checking tax evasion and other malpractices. The ultimate objective is to introduce prohibition and totally eradicate the menace of drinking, he said.
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Clamping a ban on IMFL and lottery business, especially the single and double digit lotteries and other forms of online gambling can be considered in the next phase, Yediyurappa said.Indicating that he proposed to come out with more innovative schemes in his second budget after the tremendous success of the distribution of farm loans at 4% interest, bicyles to 1.75 lakh girl students and 2.25 lakh boys and cash deposit of Rs 10,000 to girls born in BPL families from April 1 last year under the Bhagyalaxmi scheme to be redeemed at the end of 18 years. The cash deposit would be paid to 1.25 lakh girls born till last month in the form of bonds from February first week.
Karnataka’s financial position was quite sound and bouyant, the deputy chief minister said pointing out that the state had already succeeded in moblising Rs 16,958 crore taxes till the end of December against the full year’s target of Rs 22,514 crore accounting for 75.32% collections as against barely 30.56% for the same period last year.
The rate of growth of revenue was over 30% this year, he said pointing out that commercial taxes alone accounted for Rs 10,223.8 crore till the end of December against the full year’s target of Rs 14,190.8 crore accounting for 72.05% collection.
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