Bengaluru: The state Government is likely to increase the duty on alcohol from 10 percent to 15 percent soon, and the rate on hard drinks including beer will be increased, as per the sources in the Excise Department.
The Government, which is putting more emphasis on resource mobilization, has decided to raise the price of liquor soon. There is a high possibility that an order in this regard will come out during the budget.
The Excise Department generally earns revenue through excise duty collected from the sale of liquor, wine, and fees on liquor manufacturing units and retail liquor licenses. Earlier in May 2020, the price of liquor was increased.
Talking about this to media, Federation of Wine Merchants’ Association President S. Guruswamy said that discussions are going on about the possibility of a 15 percent increase in the price of liquor. But, nothing is clear. So far the Government has not spoken to the association. Already the price of liquor in Karnataka is exorbitant compared to other states of the country. If it is increased now, it will affect the middle class people, he said.
If the duty increases, the prices of beer will increase. Around 10 percent to 20 percent increase is likely on each bottle. The price of Budweiser beer is likely to increase from Rs. 198 to Rs. 220, UB beer from 125 to 135, strong from 130-135, Kingfisher beer from Rs. 160 to Rs. 170, said the Liquor Sellers’ Association.
One of the bar owners, Manjunath said, “If the price of liquor increases, the middle class will be hit harder. This is the attitude of the Government giving guarantees in one hand and taking away from the other,” he added.