Oct 28, 2024 08:52 AM IST
The Beer Affiliation of India (BAI) requested Karnataka Chief Minister Siddaramaiah to revoke the draft notification as it’d hassle the beer makers.
After the Karnataka authorities drafted a brand new notification proposing a hike in excise responsibility based mostly on beer’s alcohol content material, the costs of robust beers are more likely to go up within the state. The Beer Affiliation of India (BAI) requested Karnataka Chief Minister Siddaramaiah to revoke the draft notification as it’d hassle the beer makers.
Karnataka’s alcohol costs have been revised twice within the final two years. Liquor is most costly in Karnataka in comparison with all different south Indian states.(Parveen Kumar/Hindustan Instances)
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In accordance with the brand new draft notification, 10-20% of value enhance was proposed on beers which have a excessive alcohol proportion. Karnataka authorities additionally requested the beer manufactures within the state to declare the quantity of sugar content material in beers for the purchasers and BAI has additionally opposed the transfer.
What did the letter say?
In a letter, BAI mentioned, “The increase proposed in the draft notification would increase the prices by 10-20 per cent in mainstream and premium segments. At the same time, it would make beer unaffordable to the masses with the proposed 35 per cent increase in taxes in this segment.”
The physique additionally mentioned that the income to the federal government may additionally face a dip because of the low gross sales. “Because of the influence on MRP, we estimate the tax revenues from the beer class may very well fall to the tune of ₹400 crore income from this proposal,” it additional added.
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BAI additionally mentioned that the favored beer makers like United Breweries, ABInBev and Carlsberg have large investments within the state, and the contemporary transfer may additionally maintain them enthusiastic about the additional investments in Karnataka. In the meantime, the affiliation confirmed disinterest in revealing the sugar and malt content material in beer. “It will mislead and confuse consumers, add an undue compliance burden on beer manufacturers, force breweries to reveal confidential information, and reduce the ease of doing business in the state,” the letter mentioned.
Karnataka’s alcohol costs have been revised twice within the final two years. Liquor is most costly in Karnataka in comparison with all different south Indian states.
(With company inputs)
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See extra Information / Cities / Bengaluru / Beer costs more likely to go up once more in Karnataka? Alcohol physique writes to CM Siddaramaiah requesting him to revoke the thought