Beer prices in Karnataka are set to rise after the state increased the excise duty on all beer to 205% of its manufacturing cost, up from 195%.

This move includes an additional 10% hike in the Additional Excise Duty (AED).

Premium and niche beer brands could see a price increase of around Rs 10 per bottle, depending on manufacturing costs, while mid-range and cheaper local beers may experience a rise of less than Rs 5 per bottle. The exact price change will depend on the brand.

Previously, Karnataka used a dual tax system, where lower-end beers were taxed at Rs 130 per litre, while other brands faced a percentage-based rate.

This system has now been replaced with a simplified single 205% tax for all beer brands, regardless of category.

This tax hike marks the third increase in the last three years.

In July 2023, the Congress government raised the AED from 175% to 185%, and another revision occurred in January 2025, bringing it to 195%.