Bitter Brew: Karnataka beer prices surge as government increases excise duty

In a prelude to the upcoming state budget, the government has delivered a blow to beer enthusiasts by hiking the prices. The surge in beer prices is attributed to the state government’s decision to raise the additional excise duty on beer from 185 to 195 percent. Commencing February 1, consumers will witness a notable spike, ranging from INR 5 to 12 per bottle, contingent upon the brand. This increase encompasses all categories of beer, spanning from common brands to premium selections.

This marks the second instance of a beer price hike since the Congress government assumed power in May 2023. The initial augmentation took place during the budget presentation on July 7, shortly after their electoral triumph, wherein the Siddaramaiah-led government implemented a 20 percent rise in additional excise duty on beer.

Anticipations loom over further escalations in excise duties on various liquors following the state budget presentation scheduled for February 16. Speculations suggest that the impetus behind this excise duty surge stems from a substantial surge in beer sales.

The state government underscores the significance of excise revenue, as it plays a pivotal role in Karnataka’s financial landscape. For the fiscal year 2023-24, Karnataka aspires to generate a revenue of Rs 36,000 crore from excise duties.