Bengaluru, renowned as the pub capital of India, is facing a new obstacle as the state government announces its annual increase in the additional excise duty on alcohol. Effective from August 1, the excise duty on Indian-made liquor (IML) will surge by 20% on all slabs, while beer will experience a hike from 175% to 185%. However, this year’s increase poses a significant challenge for the pub industry, amplified by other concurrent price rises impacting the sector.
Nita Kapoor, Chief Executive Officer of the International Spirits and Wines Association of India, emphasises the gravity of the 20% hike, asserting that Karnataka will become the most expensive state for spirits in the country. This raises a pertinent question: can Bengaluru maintain its esteemed title as the pub capital while grappling with the consistent price surge across various sectors, including milk, gas, tomatoes, and alcohol? Will struggling businesses be able to withstand the mounting inflationary pressures?
Anirudh Kheny, managing partner at Daysie, M G Road, emphasises the collective impact of rising prices across various sectors, creating difficulties for businesses to adapt. He remarks, “The consistent rise in prices, , poses a significant challenge for the pub industry to keep pace with the changing economic landscape.”
