According to the new draft rules, the additional excise duty (AED) on beer production has been increased from 195% to 205%.
Mumbai: Bad news for beer lovers. Prices have increased in states neighboring Maharashtra. The price of cold beer has increased in the middle of summer. Due to this, citizens will now have to pay more. Beer lovers in Karnataka have suffered a big blow. The state government has decided to increase the excise duty on beer by a whopping 10%, which will directly increase the price of beer.
According to the new draft rules, the Additional Excise Duty (AED) on beer production has been increased from 195% to 205%. Although the government aims to simplify the tax system, this will have an impact on the pockets of consumers. The decision could increase the price of premium brand beer by about Rs 10 per bottle, while local low-cost beers are expected to increase by up to Rs 5.
This price hike will definitely impact the purchasing power of the consumers. Earlier, there was a dual taxation system in the state – some beer brands were taxed at a fixed rate of ₹130 per litre, while others were taxed as a percentage. Now, both these types have been abolished and a uniform excise duty of 205% has been imposed. The price of beer in Karnataka has increased three times in the last three years.
In July 2023, the Congress government had increased the AED from 175% to 185%. Then in January 2025, the AED was increased to 195% and now in April 2025, it has reached 205%. Apart from this, the base excise duty on beer was also revised during that period. Karnataka is the leading state in the country in the production and consumption of beer.
The state consumes about 3.8 million hectoliters of beer annually, which is about 12% of the country’s total consumption. However, the continuous price hike has raised fears among beer vendors in the state that sales will decline. As consumers are affected by the price hike, there is a possibility of a decline in the demand for beer.