The Karnataka government has decided to freeze beer price hikes until January to prevent a potential revenue loss. This decision comes as beer sales usually decline during winter, raising concerns about a drop in revenue collection. The move aims to stabilize state earnings during the colder months.
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Beer sales experience a significant decline every winter as drinkers opt for warmer beverages during the cold season. Excise department officials fear that a price hike during this time would further impact sales, aggravating the revenue shortfall.
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A proposal to increase beer prices had already been submitted by the excise department, and the government even issued a draft regarding the price revision. However, after considering the seasonal impact, officials have decided to maintain the current prices until the end of winter.
This winter, Karnataka is expected to face extreme cold until January, which traditionally results in a 10-20% drop in beer sales. As a result, excise revenue is at risk, especially since the department is struggling to meet its financial targets.
The government has assigned a revenue target of ₹36,000 crore to the excise department for this fiscal year. However, even after six months, the department has managed to achieve less than half of the target. With beer sales slowing down in the winter, officials are worried about further revenue challenges.
For now, beer lovers in the state can breathe a sigh of relief as prices will remain unchanged through the winter season.
