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Karnataka budget: CM robs some fizz off beer


BENGALURU: Beer guzzlers must cough up more cash as the drink is going to be expensive with chief minister H D Kumaraswamy proposing to hike additional excise duty (AED) on it in n his funds.

HDK, who had hiked AED on Indian made liquor (IML) across the cost slabs ultimate yr, proposed to hike AED on beer from 150 % to 175 % for 2019-20. As a result, customers, who are now paying Rs 125 for a bottle of beer, must pay Rs 136.50 after the obligation hike.

At provide, a bottle of beer with a base worth of Rs 46 draws excise duty of Rs 10 and AED of 150% ( Rs 69), including up to the marketing worth of Rs 125. Now, if the AED is hiked to 175 % (Rs 80.50), the marketing worth shall be Rs 136.50.

The chief minister also proposed to hike AED on draught beer from 115% to 150 %. Beer brewed at micro-brewery will also be expensive as excise duty on it's set to move up from Rs five to Rs 10 per bulk litre and AED on it'll pass up from Rs 12.50 to Rs 25.

Excise duty and AED on low alcoholic beverages like Breezer has been proposed to be hiked from Rs five to Rs 10 and from 122 % to 150 % respectively.


The CM has mounted the income goal from liquor sales at Rs 20,950 crore for 2019-20. The goal used to be Rs 19,750 crore, which Kumaraswamy said the government would meet through the tip finish of March this yr.



The business representatives said they have been looking for an hike in elementary worth of liquor, but the CM has hiked duty as a substitute.


“It is greater than 3 years since elementary worth of liquors used to be hiked. Since then our production price has larger,” said Shivalingaiah, secretary basic of Karnataka Brewers & Distillers Association. “The duty hike benefits the government exchequer, whilst the business is left high and dry.”


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