India: Beer makers urge Karnataka government to withdraw draft notifications with a fear of 10-20% price hike

Published 2024년 10월 27일

Tridge summary

The Beer Association of India (BAI), representing major beer makers, has appealed to the Karnataka government to withdraw proposed draft notifications that aim to increase duty on beer through alcohol content-based classification, warning that it could lead to a 10-20% price hike and make beer unaffordable for the masses. The BAI also raised concerns over the potential impact on tax revenues, investment in breweries, and various stakeholders, including the hospitality industry. They also expressed concerns about the proposed labeling of malt and sugar content, stating it could mislead consumers and impose an undue compliance burden on manufacturers. The BAI has requested the government to revise the amendment to prevent a significant increase in retail prices.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

New Delhi, Oct 27 (PTI) The Beer Association of India (BAI) has urged the Karnataka government to withdraw draft notifications, which proposed a hike in duty through alcohol content-based classification in beer, saying that on average this move would lead to a price increase of 10-20 per cent in mainstream and premium segments. The draft notification proposes to double the excise duty on strong beer to Rs 20 per bulk litre, increase the minimum billing price for beer in the state to Rs 300 per case and Additional Excise Duty (AED) to 195 per cent of the billing price or Rs 130 per bulk litre whichever is higher. BAI, which represents leading beer makers United Breweries, ABInBev and Carlsberg, said these draft notifications are not in the interest of any of the stakeholders and may result in high prices for consumers, impact Ease of Doing Business in the state and may lead to lower tax revenues as sales would be impacted. “The increase proposed in the draft notification would ...
Source: Theprint

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