After Karnataka CM Siddaramaiah proposed a 20 per cent hike in additional excise duty (AED) on liquor in Budget 2023-24, the state will continue to have the most expensive premium liquor brands in the country. The new prices will come into effect after the state legislature passes the Budget on July 19.
According to a TOI report quoting excise department officials, liquor brands that bear lower price tags are still cheaper in Karnataka compared to other states as it has long banned the sale of crude country liquor variant Arrack.
“Except for the first slab (the lowest slab with a price band of up to Rs 449 per bulk litre), all other brands have become very expensive in Karnataka. It will definitely pinch consumers of all categories,” said Karnataka Brewers and Distillers Association President Arun Kumar Parsa, according to the TOI report.
When it comes to consumption, the report quoting excise officials said over 78 per cent of consumers buy the lowest slab and medium slab liquor, while just 5 per cent consume top brands. The top slab liquor brands are priced at over Rs 15,001 per bulk litre.
According to the report, after the rate hike, beer in Karnataka will be the third most expensive at Rs 187 per 650 ml, followed by Tamil Nadu (Rs 210) and Delhi (Rs 190).
Nita Kapoor, CEO of the International Spirits and Wines Association of India, has said the 20 per cent excide duty increase on Indian made liquor will make Karnataka the most expensive state for spirits in India. The state’s share of taxes at 80 per cent of MRP has restrited the growth of premium brands in the state.
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