New Delhi, Oct 27 (Reporter) The Brewers Association of India (BAI) has raised alarm over the Karnataka Government's proposed tax hikes, which are set to increase beer prices by Rs 10-15 per bottle. This increase could see the price of strong beer rise from the current Rs 95 to Rs 140 per bottle, positioning it among the most expensive in the country. The association warns that this escalation in costs will directly impact consumers and potentially shift their preferences towards cheaper hard liquors. Vinod Giri, Director General of BAI, expressed concern regarding the potential fallout from these tax increases. "If implemented, this will mark the third increase in taxes on beer in just 15 months, making it exceedingly uncompetitive compared to hard spirits. Such policies could lead consumers to favour stronger alcohol, which is not advisable according to public health recommendations from the World Health Organisation," he stated. The proposed draft notification from the Karnataka government not only aims to raise excise duty on strong beer by 100% to Rs 20 per bulk litre but also increases the minimum billing price for beer to Rs 300 per case. Giri criticised the government’s approach, pointing out that it seems designed to discourage beer consumption, despite its popularity and cultural significance in the state. "Beer has no sugar in it, and the definitions established by the FSSAI are already comprehensive. We don’t see a valid reason for Karnataka to impose additional requirements regarding the declaration of malt and sugar content on labels," Giri remarked. He added that adding more information to already cluttered beer labels will only detract from their appeal. The BAI’s letter to the government underscores the significant role of the beer industry in Karnataka, where 11 breweries contribute to the local economy and provide employment to over 7,500 people. The association argues that the proposed changes threaten to undermine the industry's growth and investment appeal in the state. Giri concluded, "These tax increases will hurt consumers in two ways. Strong beer, which accounts for 90% of beer sold in the state, will become prohibitively expensive. Moreover, this rapid and massive tax increase is surprising, especially when the government is simultaneously reducing taxes on liquor. This approach will only encourage a shift from a milder form of alcohol to harder spirits...////...