Financial Daily from THE HINDU group of publications
Tuesday, Mar 21, 2006
Financial Daily from THE HINDU group of publications Tuesday, Mar 21, 2006 |
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Industry & Economy
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Breweries States - Karnataka Beer, IMFL price may rise sharply Our Bureau
Bangalore , March 20 The price of beer and IMFL are expected to rise sharply in Karnataka because of the increase in excise duty on liquor in the State Budget. The United Breweries' President and Chief Executive Officer, Mr Kalyan Ganguly, told Business Line that the price of 330ml bottle of beer will go up by at least 50 per cent while that of 650 ml bottle by around 5 per cent. "We don't understand the logic behind the Budget proposal on beer," Mr Ganguly said. He said the Government's move to increase the excise duty on smaller sized beer bottle was puzzling. "The 330ml bottles are mostly for the youth and it encourages them to drink in moderation. But it is a complete mystery for us on why they had to increase the duties," he said. An industry spokesperson said the move to nearly double the number of excise duty slabs on IMFL would increase the price of liquor between 5 per cent and 20 per cent. Earlier, the number was five, which has now been increased to nine. He said it would also increase the paperwork of the Government.
Wish-list
Excise revenue contributes around Rs 2,300 crore per annum to the State exchequer, which accounts for over 17 per cent of the total revenue generated by the State. In addition, the beverage alcohol industry provides jobs to over 50 thousand workers in the State, according to the Association of Domestic Beverage and Vinters' Association Director-General, Mr Sushil Haksar. In its wish list, the industry body had asked for rationalisation of duty structure and several sops to the industry. With the new Budget proposals, there is a possibility that revenues from the liquor industry could go down.
More Stories on : Breweries | Budget | Karnataka
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