Brewers’ body asks Karnataka govt to withdraw draft notifications, fear 10-20% price hike
Bengaluru: The Brewers Association of India (BAI) has urged the Karnataka government to withdraw its proposed amendments to beer regulations and tax increases, stating that these changes would negatively impact both the industry and the government.
In a press release, the BAI raised several objections to the proposed changes, highlighting that the draft introduces a new definition of beer that limits the addition of sugar to 25 percent and requires beer products to clearly label the content of malt and sugar.
"The draft notification also proposes to increase the excise duty on strong beer by 100 percent to Rs 20 per bulk litre, increasing the minimum billing price for beer in the state to Rs 300 per case and increases additional excise duty to 195 percent of the billing price or Rs 130 per bulk litre whichever is higher," the release read.
"The increase proposed in the draft notification would increase the prices by 10-20 percent in mainstream and premium segments. At the same time, it would also make beer unaffordable to the masses with the proposed 35 percent increase in taxes in this segment," said BAI, whose members account for 85 percent of the beer sold in India.
Vinod Giri, director general of the BAI, emphasised that beer contains no sugar and that the existing definition established by the Food Safety and Standards Authority of India (FSSAI) is already comprehensive and followed by all states. He questioned the necessity for Karnataka to impose its own definition.
Giri also noted that the proposed tax increases would affect consumers significantly, noting that the price of strong beer, which makes up 90 percent of beer sold in Karnataka, will increase by Rs 10-15 per bottle, making it one of the most expensive in the country. This change would increase the minimum price of beer from Rs 95 to Rs 140 per bottle.
"Due to the impact on MRP, we estimate the tax revenues from the beer category may actually fall to the tune of Rs 400 crore revenue from this proposal," said BAI.
Highlighting that Karnataka is the third largest beer market in India, the BAI stated that they are concerned that some proposed changes could hinder the growth of the industry, diminish the state's investment appeal, or drive future investments elsewhere.
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Pakistan reports two more polio cases; Total tally now 52
ISLAMABAD: At least two more cases of poliovirus were reported in Pakistan, taking the number of infections to 52 so far this year, a report said on Friday.
“The Regional Reference Laboratory for Polio Eradication at the National Institute of Health has confirmed the detection of two more wild poliovirus type 1 (WPV1) cases in Pakistan," an official statement said.
The fresh infections — a boy and a girl — were reported from the Dera Ismail Khan district of Khyber-Pakhtunkhwa province.
“Genetic sequencing of the samples collected from the children is underway," the statement read. Dera Ismail Khan, one of the seven polio-endemic districts of southern Khyber Pakhtunkhwa province, has reported five polio cases so far this year.
Of the 52 cases in the country this year, 24 are from Balochistan, 13 from Sindh, 13 from Khyber Pakhtunkhwa, and one each from Punjab and Islamabad.
There is no cure for polio. Only multiple doses of the oral polio vaccine and completion of the routine vaccination schedule for all children under the age of five can keep them protected.
