Karnataka set for another price hike? Beer rates likely to increase for 3rd time in one year, by upto Rs 50
By Vinaykumar Patil | First Published Jan 10, 2025, 4:46 PM ISTKarnataka beer prices are set to rise again from January 20, 2025, marking the third increase in a year. Excise duties will raise prices by Rs 10 to Rs 50 per bottle, following previous hikes. Meanwhile, United Breweries halts beer supply to Telangana over lower prices.
Karnataka beer lovers may face yet another price hike starting January 20, 2025, marking the third increase within a year. The state government has finalized a decision to raise the excise duty on beer, a move that will impact retail prices across various brands. The increase in beer prices follows a series of hikes in daily necessities and transportation costs, further burdening the public.
Under the new excise rates, beer with an alcohol content of less than 5% will be taxed at Rs 12 per bulk litre. Meanwhile, beer with an alcohol content ranging between 5% and 8% will see a tax increase of Rs 20 per bulk litre. The price of premium beer is expected to rise by a minimum of Rs 10 and could go as high as Rs 50 per bottle, depending on the brand.
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The state government issued the final notification on Wednesday, confirming that the new rates would come into effect from January 20, 2025. While discussions on further price adjustments are still underway, Excise Minister RB Thimmapur confirmed that no additional decisions had been made yet.
This is not the first time the state government has increased beer prices this year. In July 2023, the excise duty on Indian Made Foreign Liquor (IMFL) was hiked by 20% in the state budget, and beer prices had already risen by 10%. If implemented, this will mark the third beer price hike in just one year.
Karnataka govt freezes Beer price hike until January to prevent revenue loss
The hike comes amid rising expenditure across various sectors, with the government exploring revenue strategies to address the increasing financial burden. Beer lovers and industry stakeholders are bracing themselves for the impact of yet another price increase.
Meanwhile, United Breweries, the maker of popular beer brands like Heineken and Kingfisher, has made a bold move. The company announced that it would stop supplying its products to the Telangana Beverages Corporation Limited (TGBCL), the state-run liquor distribution company in Telangana. The decision comes after two years of no price hikes in Telangana, where beer prices are 30% lower compared to Karnataka and other states like Maharashtra, Andhra Pradesh, Tamil Nadu, and Kerala.
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