The Karnataka government has decided to freeze beer price hikes until January to mitigate potential revenue losses during the winter season. Beer sales typically dip during colder months as consumers shift to warmer beverages, prompting concerns about a decline in excise revenue. This temporary freeze aims to stabilize earnings during a challenging period for the state’s excise department.
Officials had proposed a beer price hike, and a draft revision was issued, but the seasonal impact led to the government halting the increase. Historically, beer sales drop by 10-20% during winter, and with this year’s anticipated extreme cold, the revenue shortfall could worsen. The excise department, already struggling to meet its ?36,000 crore annual target, has achieved less than half the goal midway through the fiscal year.
By maintaining current prices, the government hopes to sustain beer sales through the winter months. This decision offers temporary relief to beer consumers while helping the state avoid exacerbating revenue challenges during a traditionally low-sales period.
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