Bengaluru, 23 Jan

The state government has planned one more hike in additional excise duty (AED) on beer which will make every 650 ml bottle cost Rs 10 more.

This will be the second hike in liquor prices in six months. In July last year, Chief Minister Siddaramaiah had hiked AED on Indian-made Liquor by 20 per cent and on beer from 175 per cent to 185 per cent.

The new prices are expected to be in place from the end of January or the first week in February.

KS Shivayya, Joint Director of Excise Department, told the Salar News that the AED on beer is being raised from 185 per cent to 195 per cent. “Compared to all other liquor such as whiskey, beer is cheaper and to match the price, we are increasing the price of the beer,” he added.

A maximum retail price (MRP) store owner in Kalkere said that beer is one of the most sold beverages and the government has taken this step to increase their revenue. “The government knows that people will still buy beer despite the hike in prices,” he said

Beer consumers were disappointed with the government’s decision. “Just for the sake of poll gains and to fill their coffers, they are increasing the prices. The government should instead increase the taxes on gaming websites such as RummyCircle, MPL and others. Alcohol consumers should not be taken lightly by the government,” a customer who wishes to be unnamed said.

According to a 2023 analysis by the International Spirits and Wine Association of India, the State has the highest liquor prices in the country. The State imposes an 83 per cent tax on the maximum retail price (MRP) of liquor.