BREAKING: Shock for Karnataka liquor consumers as govt hikes tax on Beer by up to Rs 45
The Karnataka government has raised excise duties on beer, causing prices to increase by Rs 10 to Rs 45 per bottle. The hike, effective from January 20, 2025, marks the third price increase in a year. This move aims to address the state’s financial challenges.
FollowKarnataka's beer lovers are in for yet another price shock as the state government has announced an increase in excise duties, effective from January 20, 2025. This marks the third beer price hike in just one year, putting additional pressure on consumers already facing rising costs in other sectors.
Under the new excise rates, beer with less than 5% alcohol content will be taxed at Rs 12 per bulk litre, while beer containing 5% to 8% alcohol will see a hike of Rs 20 per bulk litre. This change means that prices for popular beer brands could rise by as much as Rs 45 per bottle. For premium beers, the increase is expected to be at least Rs 10, but some brands might witness a price jump of up to Rs 45, depending on the alcohol content and brand.
Karnataka set for another price hike? Beer rates likely to increase for 3rd time in one year, by upto Rs 50
Here is a breakdown of the price hikes for some popular beer brands:
- Legend: Old price Rs 100, New price Rs 145
- Power Cool: Old price Rs 130, New price Rs 155
- Black Fort: Old price Rs 145, New price Rs 160
- Hunter: Old price Rs 180, New price Rs 190
- Woodpecker Crest: Old price Rs 240, New price Rs 250
- Woodpecker Glide: Old price Rs 230, New price Rs 240
This move comes as part of the state government's strategy to tackle its financial challenges, following similar hikes in daily necessities and transportation costs. The revised excise duties are aimed at boosting the state's revenue while compensating for the increased expenditure across various sectors.
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The new rates come just six months after the government raised the excise duty on imported alcohol, further escalating the cost burden on consumers. This hike follows the previous increase in July 2023, when the excise duty on Indian Made Foreign Liquor (IMFL) went up by 20%, and beer prices were raised by 10%.
While Karnataka's beer drinkers are facing higher prices, a major development has occurred in neighbouring Telangana. United Breweries, which produces popular beer brands like Heineken and Kingfisher, has decided to stop supplying its products to the Telangana Beverages Corporation Limited (TGBCL).
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