Bengaluru: The Karnataka government has once again hiked the prices of beer and low-cost Indian Made Liquor (IML), marking the fourth liquor price revision in just two years. The latest price hike comes into effect from Thursday, May 16, following a notification issued by the state excise department.
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5% Additional Excise Duty Imposed on Beer and Cheap Liquor
According to the official notification, the excise duty on beer has been increased from 195% to 200%, while low-end IML has also seen a 5% duty hike. Initially, the government considered a 10% hike, but this was reduced after objections from the Federation of Wine Merchants’ Association of Karnataka.
New Price Impact:
- Beer Price: ₹10 increase per bottle (approx.)
- Low-Cost Liquor (up to ₹600/bulk litre): ₹15 increase per 180ml bottle
- Premium Liquor: No change in price
Federation Protests Force Partial Rollback
Govindraj Hegde, General Secretary of the Federation, stated that the price hike would impact the first four liquor price categories, typically consumed by the middle- and lower-income groups. He emphasized that repeated tax increases on affordable liquor hurt both customers and wine merchants.
Liquor Hike Since 2023: A Quick Recap
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This is Karnataka’s fourth liquor rate hike since May 2023, as part of the Siddaramaiah-led state government’s budget strategy. In the 2024 budget, the government increased taxes on cheaper liquor and beer, while offering tax relief for premium liquor brands.
Impact on Bengaluru: Bars & Shops May See Dip in Sales
Residents of Bengaluru, especially in areas like Koramangala, Indiranagar, Whitefield, and Jayanagar, may feel the pinch. Liquor shop owners expect a dip in sales of budget liquor, though premium segments remain unaffected.
- Excise duty on beer raised to 200%
- Low-cost liquor (under ₹600/bulk litre) sees ₹15 hike per bottle
- Premium liquor untouched
- Fourth liquor price hike in two years
- Federation protests reduce planned tax hike from 10% to 5%