Karnataka govt denies drop in liquor sales due to tax hike

The Karnataka state government has dismissed the recent fall in liquor sales as a normal occurrence and not indicative of a decrease in demand due to tax increases. The Chief Minister Siddaramaiah had increased the additional excise duty on liquor, sparking protests from the industry. The International Spirits and Wines Association of India expressed concerns that the tax increase would lead to people buying from neighboring states. The Excise department explained that the poor sales immediately after the tax revision is a temporary phenomenon and expects sales to return to normal soon.