Liquor cost to go up from May 15 in Karnataka

While the government of Karnataka, in the budget, had announced further rationalisation of liquor prices, it had not spelt out the details.

The cost of liquor in Karnataka is set to go upwards from May 15 as the State Government has notified the revision of additional excise duty (AED) on Indian Made Liquor and beer.

The fresh AED rates and slabs had been notified on May 13. The revision faced opposition from trade bodies that have feared loss of business due to increasing cost of liquor in Karnataka.

While the government, in the budget, had announced further rationalisation of liquor prices, it had not spelt out the details. Beer, whose consumption is growing faster than Indian Made Liquor in the Karnataka market, is seeing a fourth rise in price in over two years. Last year’s hike had been opposed by the Brewers’ Association of India, an association of beer manufacturers.

An office-bearer of the Federation of Wine Merchants’ Association of Karnataka said that excise duty has been hiked in the first four slabs that fixes the price for cheaper brands of IML. “About 80% of our business come from the high volume sale of cheaper brands. These are highly price sensitive slabs. We expect our trade to be affected by the price hike. The liquor trade, which is not growing at a higher rate, is being squeezed,” the office-bearer said. On the petitions they had submitted against the price hike, he said, “It was of no use. The government is adamant on price hike.”

According to him, the new price list is yet to be shared. Once it is shared, they will come to know the precise hike in slabs and brands.