Karnataka Beer Price Hike: All Brands Affected, Here's How Much More You'll Pay

Karnataka Beer Price Hike: Beer lovers in Karnataka will soon have to shell out more, with the state government raising the tax on all types of beer to 205% of the manufacturing cost - up from the earlier 195%. The draft rules also include a 10% increase in the Additional Excise Duty (AED).

As a result, prices of premium and imported beers could go up by around ₹10 per bottle, depending on production costs. For regular and budget brands, the hike is expected to be under ₹5 per bottle. The exact increase will vary based on the brand.

Until now, Karnataka followed a dual tax model, where cheaper beer was taxed at a flat ₹130 per litre, and other varieties faced a percentage-based rate. This system has now been replaced by a uniform 205% tax for all beer brands, regardless of category.

The government says this change is intended to simplify the tax structure. However, this is the third time in three years that beer taxes have gone up.

In July 2023, the Congress-led government raised the AED from 175% to 185%. Another hike came into effect in January 2025, increasing it further to 195% or ₹130 per bulk litre, whichever was higher.

The base excise duty was also revised earlier this year. Instead of a flat rate, a tier-based system was introduced based on alcohol content - ₹12 per litre for beers with up to 5% alcohol by volume (ABV), and ₹20 for beers with 5-8% ABV.