Beer Prices In Karnataka To Go Up After Premium Liquor Price Cut

Following a reduction in premium liquor prices, beer may soon become more expensive for Karnataka residents, with prices expected to rise by Rs 10 to Rs 30 per bottle, depending on the brand and alcohol content.

Beer sales in Karnataka have more than doubled in the last two years, driven by a post-Covid boom and extreme summers, making it more popular than Indian Made Liquor (IML). The Excise Department collected nearly Rs 5,703 crore in 2023-24, compared to just over Rs 2,757 crore in 2021-22.

Currently, there is a flat rate for all beer, but the Excise Department has proposed three slabs based on alcohol strength, along with an increase in Additional Excise Duty (AED) for both bottled and draught beer.

This proposal follows the recent reduction in premium liquor prices to boost IML sales. A final decision will be made after stakeholders submit any objections. Additionally, the department has proposed that beer manufacturers display the "minimum percentage of malt and sugar by weight" on bottles and that AED for microbreweries be doubled.

With beer sales surging, the increase in excise duty is expected to generate additional revenue for the state. This marks the third increase in beer rates under the Siddaramaiah government.