karnataka brewers warn of price hikes due to proposed excise duty changes

The brewers' association in Karnataka, which includes major players like United Breweries, AB InBev, and Carlsberg, has requested the Chief Minister to reconsider proposed draft rules.

These regulations suggest a significant increase in excise duty on strong beer, with a proposed doubling to Rs 20 per bulk litre. Furthermore, the draft notification aims to raise the minimum billing price of beer to Rs 300 per case and implement an Additional Excise Duty (AED) set at 195% of the billing price, or Rs 130 per bulk litre, whichever is higher.

This could have an impact on the pricing structure of beer in the state, which accounts for approximately 85% of India's beer sales.

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