Though beer is getting pricier in Karnataka, premium liquor may be getting cheaper following some changes in excise duties. Beer rates have been increased by Rs 10 to Rs 20 per bottle. This marks the fifth price hike in the last 17 months. A few weeks ago, beer prices had gone up and they have gone up again and now, due to rising raw material costs, the price has gone up again. Super-premium liquor is going to get cheaper in Karnataka, which happens to be the largest market for all liquor consumption by volume and by sales.
A 750ml bottle of Johnnie Walker Black Label scotch whisky will now cost around Rs 4,872 which is Rs 2,110 less than the earlier MRP of Rs 6,984. Brands like Pernod Ricard SA’s Chivas Regal 12-year-old blended scotch whisky could also cost roughly a couple of thousand rupees less than before.
In June, the Karnataka state government notified fresh slabs for calculating additional excise duty, which is expected to bring down the cost of some premium liquor labels. Excise Department sources said the actual cost of each liquor would only be revealed after the distillery notifies the declared price of their labels.
The government had rationalised the slabs and brought down the number of slabs from 18 to 16. The notification said the revision would be on brandy, whiskey, gin, rum, and other liquors, but beer, wine, toddy, and feni were not included.
“It is difficult now to say whether the cost of a particular brand will come down or not since each slab has a range. The liquor manufacturers will start providing fresh declared cost of their labels now,” sources said.
Currently, as per the industry estimate, most premium brands of liquor in Karnataka have about 80% or more additional excise duty. According to reports, premium liquor contributes just about 2% to 3% of the total excise revenue of Karnataka while it is 52% in Telangana.