Now, beer may become dearer in Karnataka

Bengaluru: After the prices of premium liquor came down, beer might get more expensive for residents of Karnataka. A bottle of beer may get dearer by Rs 10 to Rs 30, depending on the brand and alcoholic concentration.

Beer sales have more than doubled in Karnataka in the last two years thanks to post-Covid boom. Extreme summers also made beer more popular than Indian Made Liquor (IML).

The Excise Department collected nearly Rs 5,703 crore in the financial year 2023-24. It collected a little over Rs 2,757 crore in 2021-22.

Currently, there is a flat rate for all beer, but the Excise Department has proposed three different slabs based on alcohol strength. Additional Excise Duty (AED) is also going to get higher for both bottled and draught beer.

This proposal comes after the reduction of premium liquor prices to boost IML sales. The final decision however will be taken after all the stakeholders submit any objections.

They have also proposed that beer manufacturers must display “the minimum percentage of malt and sugar by weight” on their bottles and the doubling of AED for microbreweries.

An increase in excise duty, given the surge in beer sales, will create additional revenue for the state. This is the third increase in beer rates under the Siddaramaiah government.