<p>Bengaluru: Days after the Karnataka government increased the diesel tax, power tariff and even milk prices, it is set to hike liquor prices. Although the announcement was made by Chief Minister Siddaramaiah in the budget, the government issued a notification earlier this week, on Tuesday. The excise department will increase prices of beer by 10 per cent and that of economical category liquor by Rs 10-15 per quarter. </p>.<p>Raising grave concerns over the recent increase in “Additional Excise Duty” (AED) on beer to 205 per cent in Karnataka, the Brewers Association of India (BAI) wrote to Chief Minister Siddaramaiah on Friday, urging the government to immediately withdraw tax increase and put a stop to frequent hikes in taxes which is hurting the industry and investment climate in Karnataka, as it also did previously in March. </p>.Karnataka govt proposes 10% excise duty hike on beer; 2nd rise in 4 months.<p>“This is the fourth tax increase on beer in less than two years, which is almost unheard of anywhere,” said BAI Director-General Vinod Giri in his letter to the CM.</p>.<p>In July 2023, the AED on beer was increased from 175 per cent to 185 per cent. In February 2024, it was increased to 195 per cent. Following this, excise duty was increased by Rs 10 per bulk litre or Rs 78 per case on the vast majority of beer sold in the state, and now the AED has been increased to 205 per cent.</p>.<p>The association has warned of plummeting beer sales, also suggesting that further planned investments are unlikely to go forward in this situation. Presently, companies who are a part of the breweries association have invested nearly Rs 3,500 crore in Karnataka, which has 11 breweries and provides employment to nearly 7,000 people, the letter added. </p>.<p>Reiterating its arguments made a month ago, BAI underscored that beer contributes heavily to government coffers as 8 per cent sales of the volume of alcoholic beverages comes from beers it contributes 16 per cent to state’s tax revenues.</p>.<p>The association believes that the contribution of beer to government tax revenues will decline as it will force consumers to switch to cheaper alternatives which can make up for loss in sales volume in the short term but the state government will have more to lose as it will earn less tax per case from cheap beers compared to popular standard brands.</p>.<p>BAI represents beer makers such as Carlsberg, Heineken, AB InBev among others.</p>
<p>Bengaluru: Days after the Karnataka government increased the diesel tax, power tariff and even milk prices, it is set to hike liquor prices. Although the announcement was made by Chief Minister Siddaramaiah in the budget, the government issued a notification earlier this week, on Tuesday. The excise department will increase prices of beer by 10 per cent and that of economical category liquor by Rs 10-15 per quarter. </p>.<p>Raising grave concerns over the recent increase in “Additional Excise Duty” (AED) on beer to 205 per cent in Karnataka, the Brewers Association of India (BAI) wrote to Chief Minister Siddaramaiah on Friday, urging the government to immediately withdraw tax increase and put a stop to frequent hikes in taxes which is hurting the industry and investment climate in Karnataka, as it also did previously in March. </p>.Karnataka govt proposes 10% excise duty hike on beer; 2nd rise in 4 months.<p>“This is the fourth tax increase on beer in less than two years, which is almost unheard of anywhere,” said BAI Director-General Vinod Giri in his letter to the CM.</p>.<p>In July 2023, the AED on beer was increased from 175 per cent to 185 per cent. In February 2024, it was increased to 195 per cent. Following this, excise duty was increased by Rs 10 per bulk litre or Rs 78 per case on the vast majority of beer sold in the state, and now the AED has been increased to 205 per cent.</p>.<p>The association has warned of plummeting beer sales, also suggesting that further planned investments are unlikely to go forward in this situation. Presently, companies who are a part of the breweries association have invested nearly Rs 3,500 crore in Karnataka, which has 11 breweries and provides employment to nearly 7,000 people, the letter added. </p>.<p>Reiterating its arguments made a month ago, BAI underscored that beer contributes heavily to government coffers as 8 per cent sales of the volume of alcoholic beverages comes from beers it contributes 16 per cent to state’s tax revenues.</p>.<p>The association believes that the contribution of beer to government tax revenues will decline as it will force consumers to switch to cheaper alternatives which can make up for loss in sales volume in the short term but the state government will have more to lose as it will earn less tax per case from cheap beers compared to popular standard brands.</p>.<p>BAI represents beer makers such as Carlsberg, Heineken, AB InBev among others.</p>
