BENGALURU: The Karnataka government’s proposed amendments to reclassification of beer will hit the beer industry in the state very hard, said the Brewers Association of India (BAI), which represents the country’s largest beer makers. Also, it has proposed a hike in the minimum beer price.
Last month, the Karnataka government proposed amendments to restructuring of taxes as well as reclassification of beer, asking manufacturers to declare the sugar content in the beer and limit the addition of sugar to 25% in beer.
Brewers in Karnataka have already objected to these proposals, and on Sunday, the BAI said the proposed amendments would work against both the government and the industry.
Vinod Giri, the Director general of the BAI, said, “Beer has no sugar in it. There is a definition of beer set by the FSSAI which is followed by all states, and we don’t see the need to change them by one state.”
He said the larger concern is regarding putting it up on the label. “Beer labels are already cluttered with so much statutory information and warnings. Adding more information, especially when it is not even relevant, will just make them more cluttered and unappealing,” he added.
Also, on the proposed hike in the minimum price of beer, he said, if implemented, it would be the third increase in tax on beer in the last 15 months. The draft notification proposes to increase the excise duty on strong beer by 100% to Rs 20 per bulk litre and increases the minimum billing price for beer in the state to Rs 300 per case. In its letter to the government, the association states that the taxes on beer have already been increased twice in the last year.