Bengaluru: The state government has rolled out alcohol-in-beverage (AIB)-based excise duty in what it called the first such move in the country. While consumers may say three cheers to beer as it becomes cheaper now, the new tax regime has left local distillers bitter as they fear a drop in sales.
Under the new policy, the government-administered price fixation has been completely deregulated. Product placement within slabs has been left to the producers based on market considerations, the excise department said in a statement.
The Indian Made Liquor slabs have been cut to eight, keeping in mind the availability of liquor at cheaper prices to consumers. The new tax structure will ensure the price of liquor in Karnataka is lower and relatively equal to that of the neighboring Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra and Kerala, the statement added.
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The new tax regime will hurt the local manufacturers as the government is only focussed on revenues, not health of the industry, a distiller said in a tone of disappointment. A delegation of local manufacturers, he said, raised objections to the way the new tax structure was designed, but not a single suggestion had been taken.
The distiller, while not willing to be identified, said the new regime was not in sync with the local consumption habits but may end up promoting beer in the same way as western markets.
Ahead of the rollout of the new excise policy, local alcobev manufacturers urged Chief Minister Siddaramaiah to review the proposed system arguing that, they said, was skewed in favour of multinational premium brands at the expense of cheaper local ones.
Also read | Officer’s Choice whiskey maker targets premium spirits segment despite war-linked inflation worries
Karnataka Brewers & Distillers Association president Arun Kumar Parasa said they will continue to pursue their case with the government in the interests of the industry and thousands of employees working there.
Under the new policy, the government-administered price fixation has been completely deregulated. Product placement within slabs has been left to the producers based on market considerations, the excise department said in a statement.
The Indian Made Liquor slabs have been cut to eight, keeping in mind the availability of liquor at cheaper prices to consumers. The new tax structure will ensure the price of liquor in Karnataka is lower and relatively equal to that of the neighboring Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra and Kerala, the statement added.
Also read | Diageo top executives to exit as CEO pushes for revamp
The new tax regime will hurt the local manufacturers as the government is only focussed on revenues, not health of the industry, a distiller said in a tone of disappointment. A delegation of local manufacturers, he said, raised objections to the way the new tax structure was designed, but not a single suggestion had been taken.
The distiller, while not willing to be identified, said the new regime was not in sync with the local consumption habits but may end up promoting beer in the same way as western markets.
Ahead of the rollout of the new excise policy, local alcobev manufacturers urged Chief Minister Siddaramaiah to review the proposed system arguing that, they said, was skewed in favour of multinational premium brands at the expense of cheaper local ones.
Also read | Officer’s Choice whiskey maker targets premium spirits segment despite war-linked inflation worries
Karnataka Brewers & Distillers Association president Arun Kumar Parasa said they will continue to pursue their case with the government in the interests of the industry and thousands of employees working there.
