Government proposes excise duty hike, beer and liquor prices set to rise

After recent hikes in diesel, milk, and electricity prices, the Karnataka government is now moving towards increasing liquor prices, dealing another blow to consumers. A draft notification issued by the government proposes raising the excise duty on beer from 195% to 205%.

The public has been given a week to submit objections or suggestions regarding the proposal. Along with beer, the prices of other alcoholic beverages such as brandy, whisky, rum, and gin are also set to increase.

The government has decided to hike prices by ₹10 to ₹15 per quarter bottle. Beer prices, in particular, could see a rise between ₹10 and ₹20 depending on the brand. Brands with higher alcohol content will experience a more significant price hike, while premium and high-end liquor prices will remain unchanged for now.

This move marks the third liquor price hike by the Karnataka government in just two years. Officials stated that the decision aims to meet a revenue target of ₹40,000 crore from excise collections. The government is looking to capitalize on alcohol sales as a major source of income, especially after other avenues were impacted by various economic challenges.

The proposal has triggered concerns among consumers and the hospitality industry, both already dealing with inflationary pressures. Further discussions are expected once the objection period concludes.