India, May 1 -- Beer prices in Karnataka are set to rise following the state government's decision to increase the tax on beer to 205% of the manufacturing cost, up from the earlier 195%. The revised rates are part of new draft rules issued by the state, which also include a 10% hike in the Additional Excise Duty (AED).

According to reports, this revision is expected to push the price of premium or imported beer brands up by around Rs.10 per bottle, depending on their production cost. More affordable, local or mid-range beers are likely to see a smaller price bump, below Rs.5 per bottle. Actual price changes will vary across brands.

With this move, the government has also abolished the earlier dual taxation system. Previously, cheaper b...