Beer Price In Karnataka Hiked: Here’s How Much More You’ll Pay Starting January 20

Karnataka beer enthusiasts are set to face another price hike starting January 20, 2025, marking the third increase in just one year. The state government has decided to raise the excise duty on beer, which will directly affect retail prices across various brands. This increase in beer prices comes on the heels of rising costs for daily essentials and transportation, adding to the financial strain on the public.

Under the new excise duty rates, beer with an alcohol content of less than 5% will be taxed at Rs 12 per bulk litre. Beer with an alcohol content between 5% and 8% will see a tax increase of Rs 20 per bulk litre. The cost of premium beer is expected to rise by at least Rs 10, with some brands possibly seeing an increase of up to Rs 50 per bottle.

The final notification confirming the excise duty hike was issued on Wednesday, with the new rates set to take effect on January 20, 2025. While talks regarding future price hikes are still ongoing, Excise Minister RB Thimmapur has stated that no further decisions have been made as of now.

This marks the third price hike within the year, following a 20% increase in excise duty on Indian Made Foreign Liquor (IMFL) in the state budget in July 2023, and a previous 10% hike in beer prices. The latest increase comes as the state government continues to look for revenue solutions to manage its growing financial challenges.

As beer lovers brace for the impact of the price hike, the move also coincides with a bold decision by United Breweries, the maker of Heineken and Kingfisher. The company announced it would halt supplies to the Telangana Beverages Corporation Limited (TGBCL), the state-run liquor distribution company in Telangana, following two years of no price hikes. In Telangana, beer prices are reportedly 30% lower than in Karnataka and other states like Maharashtra, Andhra Pradesh, Tamil Nadu, and Kerala.