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Karnataka budget: CM takes fizz out of beer

BENGALURU: Drinkers will have to pay more for a bottle of beer as the chief minister has proposed a hike in more excise responsibility (AED). In his funds, Kumaraswamy, who had hiked AED on Indian made liquor (IML) across price slabs final year, proposed to hike AED on beer from 150% to 175%. As a result, shoppers, who are actually paying Rs 125 for a bottle of beer, will have to pay Rs 136.5 as soon as the hike kicks in.
At present, a bottle of beer with a base price of Rs 46 draws excise responsibility of Rs 10 and AED of 150% (Rs 69) for a promoting price of Rs 125. If AED is hiked to 175% (Rs 80.5), the promoting price can be Rs 136.5.

Kumaraswamy also proposed a stiff hike in AED on draught beer — from 115% to 150%. Beer brewed at micro-breweries may also be dear because the CM plans to extend excise responsibility from Rs 5 to Rs 10 in line with bulk litre. AED too will pass up from Rs 12.5 to Rs 25.

The CM has proposed a hike in excise responsibility and AED on low alcoholic beverages like breezers from Rs 5 to Rs 10 and from 122% to 150% respectively.

The CM has fastened the earnings goal from liquor sales at Rs 20,950 crore for 2019-20. The goal for the year ending March 2019 is Rs 19,750 crore, which Kumaraswamy stated the federal government will succeed in.

The choice to hike excise and AED came as a dampener to the business as representatives stated they had been in quest of a hike in basic price of liquor.

“It is greater than 3 years since basic price of liquors was once hiked and since then our production price has larger,” stated Shivalingaiah, secretary normal, Karnataka Brewers & Distillers Association. “The responsibility hike advantages the federal government exchequer, while the business is left top and dry.”

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