Brewers' body urges Karnataka govt to apply rules uniformly, flags frequent tax hike

New Delhi, Mar 5 (PTI) Brewers Association of India (BAI) has urged the Karnataka government to look into the alleged arbitrariness in beer related regulations and raised the issue of frequent hike in tax levy in the state.

BAI, which represents beer makers such as AB InBev, Carlsberg, and United Breweries accounting for 85 per cent of the beer sold in India, in a letter to the state government, pointed out frequent increase in taxes on beer, saying such move puts the beverage out of reach of most consumers.

It has also raised issues of "arbitrary mandates" related to some labels, which is making producing in Karnataka increasingly difficult, as per the letter, a copy of which has been seen by PTI.

"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," said BAI letter written by its Director General Vinod Giri.

The Karnataka government introduced the concept of rounding off the declared price (DP) to the nearest Rs 5. According to BAI, while the application of one beer supplier which sought an upward price revision got approved without due documentary substantiation, the plea of its members were put on hold.

"As a result, our member companies, which are the biggest investors and contributors to government revenues in the state, feel greatly aggrieved and discriminated against," said the letter and demanded the state government to ensure a level-playing field for all beer suppliers in Karnataka.

BAI's letter, addressed to Commissioner of Excise and Secretary (Budget & Resources) and MD KSBCL of Government of Karnataka, has sought to remove discriminations against its member companies and other beer producers and approve their applications for price revision with respect to rounding off the DP. PTI KRH HVA

Source: PTI