Karnataka hikes excise duty on liquor by 11%, announces Rs 1,610-crore relief package

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Karnataka hikes excise duty on liquor by 11%, announces Rs 1,610-crore relief package

Bengaluru: Karnataka government has hiked excise duty on liquor by 11%, in addition to the 6% that was announced in the budget. The government has also announced a special economic package of Rs 1,610 crore to help those affected by the lockdown to contain the spread of COVID-19

Over 60,000 washermen, 2.30 lakh barbers and 7.75 lakh auto-rickshaw and taxi drivers to get Rs 5,000 as a one-time compensation, as per the state government’s statement.

In addition, Rs 25,000 per hectare compensation will be given to flower growers. Flowers grown on 11,687 hectares have suffered due to lockdown.

Horticulture farmers to also get a package, but the government is still studying this.

The fixed monthly charge on the electricity bills of MSMEs will also be waived for two months. Electricity bill payments for large industries to be deferred for two months.

Construction labourers to get an additional Rs 3,000. They’ve already been given Rs 2,000.

The government is also starting a new scheme, Nekaar Samman Yojana, under which weavers will get Rs 2,000 financial aid every year.

COVID-19 Compensation Announcements
1. People from all sections of society are facing financial difficulties due to lockdown of more than 1 ½ months.

2. Flower growers have destroyed their flowers following lack of demand for their produce due to lock down. It is estimated that farmers cultivated flowers in about 11,687 hectares. Realising flower growers problems, Government has decided to announce compensation of Rs.25,000/- per hectare limited to the maximum extent of one hectare for the flower growers who have suffered crop loss.

3. Farmers who have grown vegetables and fruits due to lock down were not able to market their produce. Government has decided to announce a relief package for these farmers.

4. Covid-19 not only affected farmers, but also affected the service professionals such as barbers and washer men (dhobis) both in urban and rural areas. Govt. has decided to provide one time compensation of Rs.5,000/- each to benefit about 60,000 washer men (dhobis) and about 2,30,000 barbers.

5. Auto Rickshaw and Taxi drivers have lost their income due to lockdown. It is decided to help about 7,75,000 Auto & Taxi drivers by providing one time compensation of Rs.5,000/- each.

6. MSMEs have also suffered huge production losses due to lockdown. It takes some time for them to revive. Hence Government has decided to come to rescue of MSMEs. The monthly fixed charges of electricity bills of MSMEs will be waived for two months.

7. Payment of fixed charges in the Electricity bills of the large industries will be deferred without penalty and interest for a period of two months.

8. The following benefits will be provided for electricity consumers of all categories:

  1.  Incentive and concessions will be given to the consumer who pays the bills in stipulated time.
  2. There will be reduction in the interest on the amount for the delayed payment.
  3.  Incentive will be provided to the consumers who pays the bills in advance.
  4.  Opportunity will be provided for the payment of balance bill amount in instalments.
  5. Electricity connection will not be disconnected till 30-06-2020 for the consumers, who have not paid the balance amount of electricity bill

9. Lockdown has brought miseries for the weavers who are already suffering due to slow down of their industry. The Government has already announced Rs.109/- Crore “Weavers Loan Waiver” scheme. Of which Rs.29.00 Crore has been released during2019-20. Balance amount of Rs.80.00 Crore will be released immediately. This will help weavers to get fresh loans to continue their occupation. The reimbursement benefit will be provided for the weavers who have repaid their loan amount between 01-01-2019 to 31-03-2019.

10. I am very much pleased to announce a new scheme “Weaver Samman Yojana” (Nekarara Sammana yojane) for the benefit of the suffering weavers. Under this scheme Government will deposit Rs.2,000/- directly to the bank account of the handloom weaver through DBT. This will benefit about 54,000 handloom weavers in the state.

11.There are 15.80 lakh registered building workers in the state. Government has already transferred Rs.2,000/- to the bank account of 11.80 lakh building workers through DBT. Action has already been initiated to transfer Rs.2,000/- to the accounts of the remaining 4 lakh construction workers soon after verifying beneficiaries bank account details. In addition to this Government has decided to transfer additional amount of Rs.3,000/- to building workers through DBT.

The above compensation / benefit will be provided with an estimated cost of Rs.1,610.00 Crore which will help the people who are in distress due to lockdown.


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