Rising Excise Duty on Beer Raises Concerns for Karnataka Breweries

The Brewers' Association of India expressed concerns over the 10% hike in additional excise duty on beer in Karnataka, marking a 205% increase in two years. The association urged Chief Minister Siddaramaiah to reconsider these frequent hikes, which harm industry growth and investment climate.

The Brewers' Association of India (BAI) has voiced serious concern over a recent 10% increase in additional excise duty (AED) on beer, bringing the total hike to 205% over the past two years in Karnataka.

Addressing Chief Minister Siddaramaiah in a letter, BAI implored the government to revoke the latest tax escalation and prevent future increases, which they argue severely impact the industry's health and investment potential in the region.

Director-General Vinod Giri highlighted a dramatic decrease in the beer industry's growth from 46% in 2022-23 to a mere 1% in 2024-25, attributing this decline to recurrent taxation. With beer accounting for a significant portion of state revenue, Giri also expressed worry about the sustainability of businesses and employment in Karnataka's brewery sector.

(With inputs from agencies.)