<p>Bengaluru: Beer industry body Brewers Association of India (BAI) on Tuesday wrote a letter to the Government of Karnataka pointing out concerns regarding arbitrariness in the state’s beer regulations.</p>.<p>“We are at pains to point out that in the recent times we are witnessing increasing amount of arbitrariness in beer regulation in the state which is threatening the industry growth as is evident from the recent trends in beer sales in the state,” said the letter from Vinod Giri, Director General of BAI addressed to relevant authorities of the state government.</p>.<p>The letter particularly highlights two issues. The first is the frequent increase in taxes on beer, which is putting beer out of reach of most consumers, according to BAI.</p>.Beer industry added Rs 92,324 crore to India's GDP in 2023 : Report.<p>The second is arbitrary mandates related to labels which are making production in Karnataka increasingly difficult, said the letter.</p>.<p>“Our pleas, despite being substantiated by data, have not been heeded to, making our members rethink their investments in the state,” stated the letter.</p>.<p>They added that they are now facing a situation where rules seem to not be applied uniformly to all suppliers. “We think this is against the ethos of fair competition,” emphasised the letter.</p>.<p>Citing examples, they urged the government to “remove discrimination against our member companies and other beer producers, and approve their applications for price revision with respect to rounding off the declared price (DP), when the application is in compliance with applicable rules”.</p>.<p>They also pointed out that the disproportionate tax revenue contributed by beer to the state coffers could be made possible only with “a stable policy environment”. As per the letter, “It accounts for only 8% of the alcoholic beverage sold in the state but 16% of the tax revenues earned from the sector. Further, this share has been rising; it was 11% five years ago and is now 16%.”</p>.<p>BAI represents beer makers such as AB InBev, Carlsberg, and United Breweries (a Heineken company).</p>
<p>Bengaluru: Beer industry body Brewers Association of India (BAI) on Tuesday wrote a letter to the Government of Karnataka pointing out concerns regarding arbitrariness in the state’s beer regulations.</p>.<p>“We are at pains to point out that in the recent times we are witnessing increasing amount of arbitrariness in beer regulation in the state which is threatening the industry growth as is evident from the recent trends in beer sales in the state,” said the letter from Vinod Giri, Director General of BAI addressed to relevant authorities of the state government.</p>.<p>The letter particularly highlights two issues. The first is the frequent increase in taxes on beer, which is putting beer out of reach of most consumers, according to BAI.</p>.Beer industry added Rs 92,324 crore to India's GDP in 2023 : Report.<p>The second is arbitrary mandates related to labels which are making production in Karnataka increasingly difficult, said the letter.</p>.<p>“Our pleas, despite being substantiated by data, have not been heeded to, making our members rethink their investments in the state,” stated the letter.</p>.<p>They added that they are now facing a situation where rules seem to not be applied uniformly to all suppliers. “We think this is against the ethos of fair competition,” emphasised the letter.</p>.<p>Citing examples, they urged the government to “remove discrimination against our member companies and other beer producers, and approve their applications for price revision with respect to rounding off the declared price (DP), when the application is in compliance with applicable rules”.</p>.<p>They also pointed out that the disproportionate tax revenue contributed by beer to the state coffers could be made possible only with “a stable policy environment”. As per the letter, “It accounts for only 8% of the alcoholic beverage sold in the state but 16% of the tax revenues earned from the sector. Further, this share has been rising; it was 11% five years ago and is now 16%.”</p>.<p>BAI represents beer makers such as AB InBev, Carlsberg, and United Breweries (a Heineken company).</p>