Beer to be costly, excise duty on production unit doubled: K'taka CM

Bengaluru: Beer will cost more as will other low alcoholic beverages in Karnataka from April 1 as the state budget for fiscal 2019-20 proposed a steep increase in additional excise duty on the beverages.

"I propose 25 per cent increase in additional excise duty on beer to 175 per cent from 150 per cent and 35 per cent on draught beer to 150 per cent from 115 per cent," Chief Minister HD Kumaraswamy said on Friday while presenting the budget for the ensuing fiscal in the Assembly amidst a ruckus and walkout by the opposition BJP.

As part of resource mobilisation, the Chief Minister said excise duty on 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 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 2018-19.