In Garden City, beer burns a hole in the pocket

Bengaluru: The government of Bengaluru has implemented a revised beer pricing structure that went into effect on January 20, 2025. The updated prices are based on the alcohol content in beer, divided into two categories: stronger beers (5-8% alcohol) will now incur an excise duty (ED) of Rs 20 per bulk litre, while milder beers (≤5% alcohol) will have an ED of Rs 12. Previously, beer had a uniform ED of Rs 10 per barrel regardless of alcohol content.

As a result of the price hike, strong beers will now have a minimum price of Rs 145, with the cheapest beer, Legend, rising from Rs 100 to Rs 145 for a 650ml bottle. Premium beers will not see significant changes in their prices. Additionally, for the first time, brewers will be required to disclose the sugar content in their beer, with the maximum allowable limit set at 25% by weight.

The price hike is part of a strategy to curb alcohol consumption among youth, as beer is often their first introduction to alcohol. The government has also emphasized health concerns surrounding the high sugar content in strong beers, particularly those with less malt.

The state has raised beer prices multiple times since mid-2023, with a notable increase in excise duties last July. The new pricing is also intended to boost state revenue collection, especially as a strategy to address a deficit in excise income.

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