Karnataka Cuts Liquor License Cost By 50% After Protests

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Posted by AI on 2025-06-27 12:00:29 | Last Updated by AI on 2025-06-27 10:49:23

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Earlier, the Karnataka government's decision to double liquor license fees and limit the renewal period to just three years had drawn considerable criticism from the hospitality industry. Now, the state government has revised its recent excise policy, substantially reducing the fees for obtaining a liquor license.

All types of liquor licenses will now be valid for 5 years, instead of 3, and the fee has been halved. These changes are expected to greatly benefit the industry and help revive the state economy.

This U-turn by the government has come as a relief to restaurant and hotel owners who were reeling from the financial impact of the previous policy. Many had criticized the doubling of fees and the shorter renewal period, stating that this would severely impact their businesses and result in layoffs and reduced customer footfall.

In response to the backlash and protests, Deputy Chief Minister Laxman Savadi announced the changes, saying that the objectives of the new excise policy, aimed at curbing corruption and streamlining the process, would be achieved through other measures.

The move has been welcomed by the industry, though some critics have pointed out that the fee reduction is still less than the initial amounts before the new policy.

Ultimately, the change will hopefully provide a much-needed boost for the sector and contribute to the state's economic growth.

"We welcome the decision by the government to revise the excise policy, making it more industry-friendly. The reduction in fees and the extended renewal period will help us manage our businesses better and contribute to the state's economy," said Gali Harish, President of the Karnataka Hotel Association.

The new policy is expected to benefit many, and observers are waiting to see what further developments arise from this U-turn.

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