Beer lovers in Karnataka may soon face a higher price for their favorite beverage, as the state government is poised to announce a revision in liquor rates. While beer prices are expected to increase by ₹10 to ₹30 per bottle, a significant price reduction of up to 20% is anticipated for premium liquor. This price adjustment, as reported by The Hindu, is aimed at promoting the sales of Indian Made Liquor (IML) and boosting excise revenue.
The beer price hike will vary depending on the brand and its alcohol content. This development comes just days after Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar announced a hike in water tariffs, potentially leading to a 20-30% increase in water prices. The implementation of the new liquor prices may take some time, as the rate revision process is still ongoing.
The government’s move is driven by a long-standing demand from stakeholders, according to reports. The revision seeks to reduce the costs of certain popular liquor brands, ultimately leading to an increase in excise revenue. Initially, the new beer prices were scheduled to be implemented by August 27th, potentially aligning Karnataka’s liquor prices with those of neighboring states. However, new supplies of liquor with the revised rates have yet to reach merchants. A final decision regarding beer pricing will only be made after all stakeholders submit their objections and feedback on the proposed changes.
The surge in beer sales in Karnataka, more than doubling in the past two years, has been attributed to a shift in consumer behavior following the COVID-19 pandemic and rising summer temperatures, according to Deccan Herald. Currently, all beer in the state is subject to a uniform rate. However, the Excise Department has proposed a revised pricing model that establishes three distinct price slabs based on alcohol content. Furthermore, an increase in the Additional Excise Duty (AED) for both bottled and draught beer is anticipated, contributing to the projected price increase.
