From April 1, in Karnataka, the price of beer as well as other low alchoholic beverages will increase as the state budget for fiscal 2019-20 proposed a steep increase in additional excise duty on the beverages.
"I propose 25 percent increase in additional excise duty on beer to 175 percent from 150 percent and 35 per cent on draught beer to 150 percent from 115 percent", Chief Minister HD Kumaraswamy said on Friday while presenting the budget for the ensuing fiscal year in the Assembly amidst a ruckus and walkout which was staged by opposition BJP.
The Chief Minister said that the excise duty on the beer manufactured in a micro-brewery would be doubled to Rs.10 per bulk litre (BL) from Rs. 5 per BL and additional excise duty to Rs. 25 per BL from Rs. 12.50 per BL.
"I also propose to increase excise duty on low alcoholic beverages to Rs. 10 per BL from Rs. 5 per BL and additional excise duty on them to 150 per cent from 122 per cent," said Mr Kumaraswamy.
The Chief Minister who also holds the finance portfolio, told the legislators that the State Excise Department would mobilise Rs. 20,950 crore through the proposed hike in duties as against the target of Rs. 19,750 crore set for fiscal year 2018-19.