Karnataka is planning to increase beer prices, with a proposed tax hike based on alcohol content. This could mean a rise of 10-20% for stronger beers, which has raised concerns from the Beer Association of India (BAI). They are urging the government to reconsider this proposal, fearing it could negatively impact both consumers and the beer industry.
Bengaluru already has some of the highest alcohol prices in South India, and this new tax could put even more pressure on consumers, particularly in the premium market. BAI warned that if the tax increases go through, it might lead to a significant drop in beer sales and a potential loss of ₹400 crore in tax revenue for the state.
The association also highlighted concerns that major beer brands like United Breweries and AB InBev might reconsider their investments in Karnataka if the new rules are implemented. Additionally, the proposal includes a requirement for breweries to disclose sugar and malt content in their beers, which could confuse consumers and complicate operations for manufacturers. Overall, both beer drinkers and producers are watching closely as this situation develops.
