Karnataka’s beer lovers are in for a rude shock! The state government’s latest tax hike is set to send beer prices soaring, sparking outrage from brewers, bars, and consumers alike. The Brewers Association of India (BAI) is fighting back, warning that these changes could cripple Karnataka’s beer industry.
What’s Brewing? The Bitter Tax Blow
The government plans a steep tax hike on strong beer (6.5%-8% ABV), doubling the excise duty to ₹20 per bulk liter. But that’s just the start:
- Minimum billing price per case to jump to ₹300
- Additional Excise Duty (AED) to skyrocket to 195% of billing price OR ₹130 per bulk liter
- This is the third tax hike in just 15 months!
If approved, beer prices could jump by 10-20% overnight, making your pint a pricey affair.
Who’s Feeling the Heat?
- Consumers: Get ready to shell out more for your chilled beer!
- Bars & Retailers: Higher prices = lower sales. Pubs and liquor stores could take a massive hit.
- Brewers & Investors: Big brands like AB InBev, Carlsberg, and United Breweries may rethink Karnataka investments.
- Government Revenues: Higher taxes might backfire, pushing people toward cheaper spirits—or even illegal liquor.
BAI Calls Foul: “Unfair & Unstable”
Brewers aren’t just angry about the tax. They’re also slamming the unequal approval process for price hikes. Some brands get approvals instantly, while others face endless delays due to so-called “technical issues.”
“There’s no level playing field. These sudden tax hikes make doing business impossible,” said Vinod Giri, Director General, BAI.
Adding to the mess, Karnataka wants new labeling rules forcing brewers to list malt and sugar content—even though beer naturally contains NO sugar!
Interesting Read
Is Karnataka Killing Its Beer Culture?
Once a beer paradise with 11 breweries and thousands of pubs, Karnataka could see its beer culture fade as prices push consumers toward hard liquor.
BAI is urging the government to rethink these changes before they crush the industry. With the budget around the corner, the big question remains: Will Karnataka listen, or will beer lovers have to pay the price?
