Brewers’ Association Appeals to Karnataka Government for Uniform Regulatory Framework Over Frequent Hikes

The Brewers Association of India (BAI) has urged the Karnataka government to address concerns over alleged inconsistencies in beer-related regulations. Representing major beer manufacturers such as AB InBev, Carlsberg, and United Breweries, which account for 85% of beer sales in India, BAI has highlighted issues regarding frequent tax hikes and regulatory disparities that hinder fair competition.

Frequent Tax Increases and Regulatory Concerns

In a letter to the state government, BAI pointed out the recurring tax hikes on beer, arguing that such measures make the beverage unaffordable for many consumers. The association also raised concerns about “arbitrary mandates” related to labelling, which have made beer production increasingly difficult in Karnataka. These issues, according to BAI, create an uneven business environment, impacting industry growth, government revenue, and consumer affordability.

Disparities in Price Revision Approvals

BAI’s letter, signed by Director General Vinod Giri, stated “Now we face a situation where rules seem to be not being applied uniformly to all suppliers. As a responsible industry body, we think this is against the ethos of fair competition and will do more harm than good in the long run for the industry, the government revenues, the consumers, the local economy and the investment climate in the state”

The Bar Association of India (BAI) has raised concerns about the Karnataka government’s ₹5 price rounding policy. They claim a beer supplier’s price hike was approved without sufficient proof, while their members’ similar requests are being held back.

Conclusion

BAI has called on the Karnataka government to establish uniform regulatory practices that uphold fair competition. The association stressed that biased policies could negatively impact industry stakeholders, government revenue, and the overall investment climate in the state.

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