BENGALURU: Drinkers will have to pay more for a bottle of beer as the chief minister has proposed a hike in additional excise duty (AED). In his budget, Kumaraswamy, who had hiked AED on Indian made liquor (IML) across price slabs last year, proposed to hike AED on beer from 150% to 175%. As a consequence, consumers, who are now paying Rs 125 for a bottle of beer, will have to pay Rs 136.5 once the hike kicks in.At present, a bottle of beer with a base price of Rs 46 attracts excise duty of Rs 10 and AED of 150% (Rs 69) for a selling price of Rs 125. If AED is hiked to 175% (Rs 80.5), the selling price will be Rs 136.5.Kumaraswamy also proposed a stiff hike in AED on draught beer — from 115% to 150%. Beer brewed at micro-breweries will also be expensive as the CM plans to increase excise duty from Rs 5 to Rs 10 per bulk litre. AED too will go up from Rs 12.5 to Rs 25.The CM has proposed a hike in excise duty and AED on low alcoholic beverages like breezers from Rs 5 to Rs 10 and from 122% to 150% respectively.The CM has fixed the revenue target from liquor sales at Rs 20,950 crore for 2019-20. The target for the year ending March 2019 is Rs 19,750 crore, which Kumaraswamy said the government will achieve.The decision to hike excise and AED came as a dampener to the industry as representatives said they were seeking a hike in basic price of liquor.“It is more than three years since basic price of liquors was hiked and since then our production cost has increased,” said Shivalingaiah, secretary general Karnataka Brewers & Distillers Association. “The duty hike benefits the government exchequer, while the industry is left high and dry.”

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