Karnataka Bandh Impact: Rs 400 Crore Tax Loss, Businesses Bear The Brunt

The Karnataka bandh, prompted by the Cauvery water dispute, resulted in a substantial tax loss of Rs 400 crore for both the state and the Central government in a single day. Various pro-Kannada groups organized the bandh to demand the state's withholding of Cauvery water from Tamil Nadu.

Bengaluru experienced three bandhs within a span of 20 days, causing the shutdown of shops and businesses. The private transport association staged a bandh on September 11, effectively paralyzing Bengaluru.

The second bandh was initiated by certain pro-farmer groups, demanding the cessation of water release to Tamil Nadu. Subsequently, pro-Kannada groups also enforced a bandh on Friday, disrupting regular life over the same issue.

Ramesh Chandra Lahoti, the president of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), disclosed that the state incurred a tax loss of Rs 400 crore on Friday alone.

"Approximately 80% of traders and businesses supported the bandh organized by various groups. Karnataka's tax revenue suffered a loss of Rs 400 crore. We urge the state government to engage in a dialogue to resolve the water dispute, which might lead to a solution," Lahoti expressed.

Industry experts indicated that the September 26 bandh in Bengaluru caused losses of at least Rs 250 crore across various sectors.

In light of the bandh on Friday, it is estimated that over 10,000 hotels throughout Karnataka collectively suffered losses ranging from Rs 150-160 crore, with an estimated loss of up to Rs 60 crore in Bengaluru alone.

The excise industry reportedly faced a loss of Rs 180-200 crore due to the bandhs observed on Tuesday and Friday.