BAI Opposes Proposed Beer Duty Hike in Karnataka

The Beer Association of India (BAI) has petitioned the Karnataka government to retract draft notifications proposing a rise in excise duty based on alcohol content in beer. This change could lead to a 10-20% price hike, affecting consumers, businesses, and state tax revenues adversely.

The Beer Association of India (BAI) has formally opposed the Karnataka government's draft notifications proposing an alcohol content-based classification for beer, urging their withdrawal due to potential adverse consequences.

The proposed increase would result in excise duty for strong beer doubling to Rs 20 per bulk litre alongside a 195% hike in Additional Excise Duty, significantly raising consumer prices.

BAI, representing major beer brands, argues that the draft notifications are not beneficial for stakeholders and could lead to reduced sales, tax revenues, and possibly undermine the state's investment prospects in the beer industry.

(With inputs from agencies.)