<p>Bengaluru: The Karnataka government has officially notified the increase of Additional Excise Duty for beer and economic IML brands. </p><p>This is the fourth such price hike by the Siddaramaiah government in less than two years. The additional excise duty (AED) for beer is set to go up from 195% to 200%. Cheaper IML brands will see a possible hike of Rs 15 to Rs 20 per quart (180 ml).</p><p>The initial draft notification had proposed an AED hike of 10%, from 195% to 205%. Consequently, the Federation of Wine Merchants' Association Karnataka wrote a letter objecting to the hike and the Brewers' Association of India (BAI), also opposing the price hike. </p><p>The 16 slabs for IML are divided by price range with different AED for each slab. The government has increased the duty for the first four, most economical slabs of IML. </p>.Pubs, bars up security.<p>The price change, however, depends on whether liquor and beer companies decide to pass on the cost, according to Director General of BAI Vinod Giri. </p><p>"The beer market in Karnataka saw contraction in some months due to previous excise hikes. something which hasn't happened in recent memory. The growth also flattened at 1%. These sorts of decisions will end up affecting the government's revenue if the beer sales dip further," he added. </p><p>The Federation of Wine Merchants' Association Karnataka, Bengaluru also opposed the hike, in a letter to the Chief Secretary of the state Revenue Department, saying that the continual increase in AED for the economical slabs has caused the sales of IML in the first four slabs to dip by 3% from 2024 to 2025. </p><p>The federation urged the government to reconsider the price hike and even suggested that the rates must be lowered warning of illegal transportation of alcohol from neighbouring states, but to no avail.</p>
<p>Bengaluru: The Karnataka government has officially notified the increase of Additional Excise Duty for beer and economic IML brands. </p><p>This is the fourth such price hike by the Siddaramaiah government in less than two years. The additional excise duty (AED) for beer is set to go up from 195% to 200%. Cheaper IML brands will see a possible hike of Rs 15 to Rs 20 per quart (180 ml).</p><p>The initial draft notification had proposed an AED hike of 10%, from 195% to 205%. Consequently, the Federation of Wine Merchants' Association Karnataka wrote a letter objecting to the hike and the Brewers' Association of India (BAI), also opposing the price hike. </p><p>The 16 slabs for IML are divided by price range with different AED for each slab. The government has increased the duty for the first four, most economical slabs of IML. </p>.Pubs, bars up security.<p>The price change, however, depends on whether liquor and beer companies decide to pass on the cost, according to Director General of BAI Vinod Giri. </p><p>"The beer market in Karnataka saw contraction in some months due to previous excise hikes. something which hasn't happened in recent memory. The growth also flattened at 1%. These sorts of decisions will end up affecting the government's revenue if the beer sales dip further," he added. </p><p>The Federation of Wine Merchants' Association Karnataka, Bengaluru also opposed the hike, in a letter to the Chief Secretary of the state Revenue Department, saying that the continual increase in AED for the economical slabs has caused the sales of IML in the first four slabs to dip by 3% from 2024 to 2025. </p><p>The federation urged the government to reconsider the price hike and even suggested that the rates must be lowered warning of illegal transportation of alcohol from neighbouring states, but to no avail.</p>