A chilled mug of beer will cost you more this summer, what with the state government announcing a hike in excise duty on beer, Indian Made Foreign Liquor (IMFL) and other beverages with low alcohol content.

Chief Minister BS Yeddyurappa made this declaration during the two-day debate on the budget proposals in the legislative assembly on Friday.

He added that the maximum retail price (MRP) on these products would be raised, thus reducing the profit margins for all liquor joints.

Yeddyurappa added that the government hoped to earn Rs820 crore revenue by enhancing excise duty and that a notification in this regard will be issued soon. Revenue earned from this hike will be directed to fund budget programs.

Also, families affected by the ban on production and sale of arrack have something to cheer. The government announced a scheme to provide loans for them at a nominal interest rate of 3% to start a new business.

The chief minister also expressed confidence of netting over Rs3,000 crore from auctioning lands recovered from encroachers in and around Bangalore. He said the revenue from this would be utilised for developmental works.

He also announced a VAT reduction on Kannada software, silicon plastic tarpaulin and converters of organic manure from 12.5% to 4%.

Hemanth Kumar/ DNA-Daily News & Analysis Source: 3D Syndication