Mysore/Mysuru: Karnataka Government’s Resource Mobilisation Committee (RMC), constituted to review State’s excise taxation framework on alcohol, has submitted its report, proposing a shift to a public health-oriented model with taxes linked to alcohol content.
The report states that Karnataka’s current excise framework taxes alcohol based on price and product category rather than on alcohol content. About 11 percent of the State’s population consumes alcohol, below the national average.
It presents a comprehensive assessment of existing system and outlines phased implementation along with technology-driven regulatory measures.
The Committee underscored the need for excise tax reform from volume or brand-based to alcohol content in beverages and said, “Excise taxation is the most effective policy instrument available to Karnataka for reducing alcohol-related harm.”
“The tax must be based on alcohol content, not on price, brand or product category. A person’s liver, brain and reflexes respond to the quantity of alcohol consumed, not to the price paid for it,” the report said.
Inviting wider public consultation, Finance Department has placed the report in public domain on its official website. Industry stakeholders, public health experts, academic institutions, NGOs and citizens have been invited to review the document and submit feedback. Suggestions can be sent to https://finance.karnataka.gov.in/ or spobud-fd@karnataka.gov.in by 5.30 pm on May 22.
