Beer becomes dearer in Karnataka as prices set to rise again

Bengaluru: The Karnataka government has proposed one more hike in additional excise duty (AED) on beer, which is likely to result in every 650 ml bottle costing Rs 8-10 more.

The government has proposed the hike in a draft notification to amend the Karnataka Excise (Excise Duties and Fees) Rules, 1968. The new rules allowing the hike are likely to be finalised this month or early February, sources said.

The government is going for a hike “as there is a big growth in strong beer sales”, sources said.

It is also said that the hike is to fund the Congress’ five guarantees.

According to the draft notification, AED on bottled beer manufactured in Karnataka or imported into the state will be hiked by 10 percentage points from 185 per cent to 195 per cent.

This will be the second hike in liquor prices in six months. In July last year, Chief Minister Siddaramaiah had hiked AED on Indian-made Liquor by 20 per cent and on beer from 175 per cent to 185 per cent.

Excise revenue is crucial for the state government. In the 2023-24 fiscal, Karnataka has set a target of earning Rs 36,000 crore from excise.