Bengaluru, April 7 -- The beer industry has urged the Karnataka government not to go for any further tax increase as it may lead to reduced sales volumes in the state and put investment of over '5,000 crore in breweries at risk.
Frequent increases in taxes in Karnataka in recent times have affected growth from the beer industry and have also brought down tax revenues, the Brewers' Association of India (BAI) said in a letter to the state government.
Taxes on beer have been increased three times in the last 18 months - in July 2023, February 2024, and January 2025, and as a result, the growth in sales of beer in the state, which has always been healthy, has "slumped to stagnation", it said.
"After the third tax increase in January 2025, be...