Industry & Economy
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Breweries
Karnataka move to curb IMFL duty evasion
Our Bureau
BANGALORE, April 2
IN a bid to curb tax evasion, the Karnataka Chief Minister, Mr S.M. Krishna, has announced the setting up of a Beverages Corporation to handle trade relating to imported liquor and Indian Made Foreign Liquor (IMFL) and a proposal to reduce excise duty.
The Beverages Corporation is expected to curb the sales of seconds and thirds liquor along the lines of Andhra Pradesh and Tamil Nadu.
The new corporation would function under the State-owned Mysore Sales International Ltd and collect taxes on imported and IMFL, Mr Krishna said in the State Assembly.
Noting that the incidence of taxation on liquor was 200 per cent now, which acted as "a main incentive" for excise duty evasion, Mr Krishna said he proposed to bring it down so as to ensure better compliance and more revenue.
"I know the consequences and the pros and cons of the decision we have taken," he said adding it was the beginning of corrective steps to check evasion of tax.
Mr Krishna said that the excise collections have increased contrary to the opposition charges that the government favoured excise lobby.
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