H.D. Kumaraswamy, the Chief Minister of Karnataka, announced a hike in the prices of beer and other alcoholic beverages from the 1st of April. The announcement came after the State released its Budget for the fiscal year 2019, on the 8th of February.
Mr. Kumaraswamy said, “I propose to increase additional excise duty on beer from 150 per cent to 175 per cent, additional excise duty on draught beer from 115 per cent to 150 per cent, excise duty on beer manufactured in micro brewery from existing Rs 5 per Bulk litre (BL) to Rs 10 per BL, and additional excise duty from existing Rs 12.50 per BL to Rs 25 per BL.”
According to sources, as a part of resource mobilisation, the prices of the beer manufactured at microbreweries will be doubled from the existing Rs. 5/bulk litre (BL) to Rs. 10/BL. The additional excise duty will be Rs. 25/BL, which is twice the current excise duty of Rs. 12.50/BL.
Kumaraswamy also said, the excise department can mobilise Rs. 20,950 crores with the help of the proposed excise duties.
In its Budget of 2019, the Government of Karnataka granted a total of Rs. 2,34,153 crores for the development of the different departments and fields of the State.