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Time of India
2 days ago
- Business
- Time of India
Govt may amend rules to auction excise licences, wine merchants up in arms
Bengaluru: Industry stakeholders and the excise department are again at loggerheads, this time over the department's move to amend rules to facilitate auctioning of certain licences. Excise minister RB Timmapur said preparations are under way for the auction and that it is likely be completed in Sept. But industry stakeholders are sceptical. They say the number of licences that can be auctioned is significantly lower than the number listed by the department. The Federation of Wine Merchants' Associations of Karnataka says licences that the excise department considers unrenewed for about 30-35 years, and those that are pending approval, have been listed for auction. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru The federation said the list has a total 241 licences, including 136 under the CL-2 category (retail liquor shops) and 105 under CL-9 (bars). However, 463 unrenewed licences were reportedly allotted to Mysore Sales International Ltd (MSIL) in 2009 and hence cannot be auctioned now. Additionally, the federation contented that a total of 260 CL-2 and 216 CL-9 licences were validated following the allocation to MSIL till March 31. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like With temperatures hitting 95°F, this is the mini air conditioner everyone's buying in the U.S News of the Discovery Undo It maintained that only 42 licences of the 241 listed licences are pending renewal as 199 were from before 2008-09 when unrenewed licences were given to MSIL. Office-bearers of the federation met chief minister Siddaramaiah during his visit to Delhi last week and submitted an appeal against the department's decision to auction licences. Timmapur has said that he has asked officials to consider legal issues raised by the federation. "The rules may have to be amended to auction licences," he said, adding that merchants may be worried about the effect of new licence approvals on their businesses. A senior official told TOI that details of the auctioning process are yet to be decided. "The available licences will be auctioned only after legal hurdles are cleared," the official said, adding that the merchants' interpretation is inaccurate. The decision to auction licences comes in the backdrop of low liquor sales in the state compared to last year. The excise department said sales of beer fell by 20.4% between April 1 and July 30 this year, compared to the same period last year. Sales of Indian-made liquor (IML) also fell, but at 2% the decrease wasn't as dramatic. Interestingly, revenue for the period rose by 12.2% in 2025 compared to 2024. The department had increased additional excise duty on IML in May and excise duty on beer in Jan. Excise duty on beer now stands at 200% from the earlier 195%. However, the other component of paying Rs 130 per bulk litre (whichever is higher) was dropped. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Hindustan Times
27-06-2025
- Business
- Hindustan Times
Proposed excise licence fee hike cut to 50%: Karnataka govt
The state government on Thursday rolled back its decision to double the liquor excise license renewal fees and announced a more moderate 50% hike, which will come into effect from July 1. The move follows strong opposition from liquor sellers and craft alcohol producers, some of whom threatened to shift operations to other states after the May 15 draft proposal mentioned a 100% hike. Excise minister RB Timmapur 'We had to consider everyone's views, so the CM and I agreed to lower the hike to 50%,' said excise minister RB Timmapur. He admitted that while the original proposal aimed to boost state revenue by ₹ 600–700 crore annually, the government opted for a balanced approach. The state also extended the validity of excise licenses from one year to five years — a key demand from the industry. According to the notification, license fees for hotels and bars in major cities like Bengaluru (with populations above 2 million) were increased to ₹ 2.75 lakh per annum from the earlier ₹ 8.5 lakh. Similarly, renewal fees for retail outlets (CL2), clubs (CL4), and bars and restaurants (CL9) were increased by 50%. Distilleries will now pay ₹ 67.5 lakh annually, up from ₹ 45 lakh, and breweries will see their fees rise from ₹ 27 lakh to ₹ 40.5 lakh, the order stated. As per the order, the license fees of hotels and bars in metropolitan areas with over 2 million residents will have to pay ₹ 9 lakh, while smaller corporations and municipalities will pay between ₹ 6 lakh and ₹ 7.5 lakh. Additional excise categories, including distilleries, warehouses, fortified wine producers, and craft breweries, also face revised annual fees. Craft breweries, for instance, will now pay ₹ 25,000, while distilleries with warehouse facilities will pay ₹ 67 lakh. The revised inspection policy, which has mandated the regulatory checks from an annual to a five-year cycle, was well received by license holders. 'Every year, during the inspections, a few officials tend to demand bribes and an increase in the inspection period is a welcome move as it will bring down corruption,' said Karunakar Hegde, Bengaluru divisional president of the Federation of Wine Merchants Association of Karnataka. 'We would not have been able to run business if the hike was 100%. Though 50% increase will also hit our business, we can somehow manage,' he added. Prior to the rollback, Huli Distillery, Mysuru-based craft rum producer, Aruna Urs said that he never received a response after writing to the state government over a month ago, asking it to reconsider the proposed fee hike. 'For one year of licence fees in Karnataka, I can operate for nearly five years in Goa,' he said, accusing the state of stifling small businesses. Urs added that his company currently pays ₹ 63.1 lakh in fees, which will now increase to ₹ 90 lakh under the new rates. 'This is pure extortion,' he said. The fee hike and the lack of government response prompted offers from neighbouring states. Andhra Pradesh minister Nara Lokesh reportedly reached out to Urs, offering a 'tailor-made excise policy' and inviting the distillery to relocate. Urs posted on social media tagging Congress leaders, saying, 'Is this Congress' idea of ease of doing business...?' Industry experts also pointed out the frequency of tax increases in Karnataka. 'In the past two years, beer taxes have gone up four times—three times through additional excise duty and once through a general hike,' said the director general of the Brewers Association of India. 'This has pushed the price of a beer bottle from about ₹ 160 to ₹ 200,' he said. Stakeholders continue to push for additional relief. 'The government has accepted our plea to extend the license validity to five years, which is a welcome step,' said B Govindaraja Hegde, general secretary of the Karnataka Liquor Sellers' Association. 'But we've also asked for the option to pay the revised fees in installments, and we're hopeful the government will agree to that too,' he added. HT reached out to leader of Opposition R Ashoka for comment, but did not receive any response.
Time of India
25-06-2025
- Business
- Time of India
Karnataka govt slashes proposed 100% hike in liquor licence fee by 50%; micro-distilleries say their concerns overlooked
BENGALURU: In double cheer for liquor industry, state govt has slashed the proposed 100% increase on licence fee for distilleries and wine shops by 50% and rolled out relief by planning to conduct regulatory inspections from once a year to once in five years from now on. Two weeks ago, representatives from wine stores and distillery owners' associations met CM Siddaramaiah and finance department officials to push for a reduction in the recently announced steep increase in licence fees. The new fees and spaced-out once-in-five-year inspections will take effect on July 1. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Finance department officials defended the hike, stating that if the increase is annualized, it amounts to just a 5% increase a year over eight years. For perspective, the licence fee (CL-9, or for bars and restaurants) was sought to be doubled from Rs 7.5 lakh a year to Rs 15 lakh a year under the proposed 100% hike move. With increase now pegged down to 50%, the revised licence fee will be Rs 11.25 lakh a year. "Since the licence fee had not been increased for close to 8 years, we decided it was much required to increase the revenue. Considering that all stakeholders had to be taken into confidence, the CM and I decided to reduce the licence fee by half," said excise minister RB Timmapur. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo Industry bodies called the rollback a significant outcome of lobbying efforts. "The govt has sacrificed Rs 400 crore in revenue," said S Guruswamy, president of Karnataka Federation of Distilleries. The govt's plan to hike licence fees by 100% was expected to fetch Rs 600-700 crore a year. Referring to the once-in-five-years' verification and approval process, he said this move will save a lot of trouble for wine stores, distilleries and breweries. While these rollbacks have been widely welcomed, smaller players and micro-distilleries said their concerns have been overlooked in a system still geared towards one-size-fits-all taxation. One of the strongest voices of dissent came from Huli Spirits, a micro-distillery that produces handmade jaggery rum. The company's founder accused the govt of driving small players out of the state. "I've made multiple representations to the government to ask them for categorising the distillery companies in the state when deciding who should pay how much licence fee to operate. It is unfair for them to levy the same Rs 1.1 crore on a distillery who is bottling perhaps 1,000 a day in numbers as well as me who is bottling 100 a day. A micro-distillery makes it all handmade and has operations similar to that of micro-breweries who have more liberal taxation policy. We should plan to create a similar concession for a craft distillery," Arun Urs, founder of Huli Spirits, said. Urs tweeted Tuesday afternoon that the CM from a neighbouring state offered a "tailormade" excise policy to set up distilleries. Despite the reduction, CL-2 wine store owners said they still face cost escalations. "CL-2 stores have to pay increased licence fee and calculate fixed costs at inflationary rates, which include rent, salaries and electricity," said Honnagiri Gowda from Karnataka Wine Merchants' Association. There are over 4,000 CL-2 wine stores in Karnataka, with 1,400 of them operating in Bengaluru alone. Reacting to this, Timmapur said not all decisions could please all stakeholders.
Time of India
14-06-2025
- Time of India
GP raises red flag over illegal alcohol sale in excise minister's domain
Bagalkot: Villagers of Halkurki, Bagalkot district, launched a battle against the illegal sale of liquor. Considering five deaths after the consumption of alcohol in a month, the gram panchayat issued a caution by beating drums, declaring that it would hand over sellers to the police if they were caught. Tired of too many ads? go ad free now Women allege that liquor is available in all shops even at 5 am, and many youngsters are addicted to it. Ironically, excise minister RB Timmapur is the in-charge minister for Bagalkot district. GP member Siddappa Bandivaddar told TOI that liquor is available in 7-8 shops. "Whenever we complain about it, they stop the sale for a while and then resume. Many youngsters, even teenagers, are addicted to it, and they are in an inebriated state as early as 8am. In recent years, many families are losing their young men, who ride bikes in an inebriated state, to road crashes. There are also some cases of addicted persons dying by suicide or their family members taking the extreme step due to the menace of the addicted person in their family. Irked by this, we approached the tahsildar, excise, and police officials to put an end to it," he explained. Muttu Naikar, a journalist, noted that an MSIL outlet set by the govt in the village is responsible for spreading alcoholism in the village. "Since the govt sets targets for the outlet, they provoke sellers to sell liquor in the village. We have requested to shut this outlet, in vain," he rued. Bandivaddar, who belongs to a Dalit community, rued that Dalits have been major victims of this liquor sale. Sources in Badami taluk administration said that a joint raid was conducted by revenue, excise, and police personnel in three shops of the village, and cases were booked. Tired of too many ads? go ad free now Neelavva Bennappanavar, a labourer, has lost her husband and son-in-law to liquor addiction in past five years. "Now my grandson, who is still a teenager, is also addicted to it. My daughter is often assaulted by her son, who demands money to consume alcohol. Human relationships have completely collapsed in the village as sons assault mothers, husbands hit wives, and even fathers take money from daughters," she said. Villagers are planning to approach the deputy commissioner and superintendent of police soon, seeking closure of the MSIL outlet. When contacted, Bagalkot DC KM Janaki said she was unaware of the issue. "It is unfortunate that youngsters are getting addicted to alcohol. We will collect details from officials and take appropriate action," she assured.
Time of India
30-05-2025
- Business
- Time of India
Minister Timmapur launches cash deposit initiative to attract students to govt schools
Bagalkot: Provision midday meals, scholarships, fee concessions, free textbooks, other study materials and uniforms are all aimed at ensuring that children are attracted to school and get educated. Tired of too many ads? go ad free now Even with all this luring, there have been instances of enrollment of students to primary schools, especially govt Kannada Primary Schools in Karnataka being poor. Several Govt Kannada Primary Schools in many villages of Bagalkot district are facing acute shortage of students, to the extent that the department of primary and secondary education is forced to think of merging some schools with other nearby schools. In villages like Uttur, Hanagandi, Shirol and others, school enrollment has been very poor. The 108 year-old Govt Kannada Primary School in Uttur is the alma mater of excise minister RB Timmapur, who is also the minister in-charge of Bagalkot district. Concerned over the fate of the century-old school where the student strength has dipped to 175, Timmapur has come out with a new scheme to ensure that the children are attracted to the school. Using his clout as the excise minister, Timmapur has roped in United Breweries (UB) Company to provide funds under corporate social responsibility (CSR) to his 'Deposit' scheme to attract the students to join the school. The scheme will be implemented in all the govt Kannada primary schools. Under the 'Deposit' scheme, Rs 2,000 will be deposited in the name of the child that gets enrolled to class 1 in govt kannada primary school. Tired of too many ads? go ad free now Head master of Uttur Kannada primary school, Ashok Bagoji said UB Company has come forward to construct 20 class rooms at a cost of Rs 2 crore under CSR. 'Deposit' scheme is expected to get good response, he said. Just a few years ago, more than 400 children used to study at the Govt model school in Shirol but the strength now has come down to 205. The school development monitoring committee has decided to deposit Rs 1,000 in the name of each child getting admitted to class 1. Motivated by the minister's initiative, several teachers in other primary schools have come forward to deposit money in the name of the children being admitted. In Hanagandi, head master RL Pattar is depositing Rs 1,000 in the name of the child from his own earnings while in Alahur school, another teacher BS Aravatti has chipped into deposit money. SDMC members have also come forward to deposit money in several other schools.
