Karnataka hikes duties on beer

The Karnataka government has increased the excise duty on beer to Rs 20 per bulk litre for those having alcohol content between 5 and 8 percent ABV, and Rs 12 per bulk litre for beer less than 5 percent ABV.

Karnataka has also increased the minimum billing price for bottled beer in the state to Rs 300 per case and hiked additional excise duty to 195 percent of the billing price or Rs 130 per bulk litre, whichever is higher. Meanwhile, the rate for bulk/draught beer has been increased to Rs 40 per bulk litre with an additional excise duty of 185 percent of the declared price or Rs 120 per bulk litre, whichever is higher. The government has also increased export duty on bottled beer to other states and import in the state by Rs 2 per bulk litre and export of bulk/draught beer to other states by Re 1 per bulk litre.

The move by the state government is slated to make beer pricier for consumers in Karnataka.

The state has also amended the   Schedule-D1 of the Karnataka Excise (Excise Duties and Fees) Rules, 1968, to “Fifty percent of the annual installed capacity at the rate of Rs 50 per bulk litre” from the earlier “Rs 25 per bulk litre”.