BAI welcomes West Bengal govt's decision to exclude beer from duty hike

New Delhi, Nov 19 (PTI) The Brewers Association of India (BAI) on Wednesday welcomed the West Bengal government's decision to exclude beer, while increasing excise duty on other alcoholic beverages, saying it reflects a practical and balanced approach of the state to ramp up revenues.

The hike, which will take effect from December 1, will be marginal and will not have much impact on consumer prices, said BAI in a statement.

BAI represents leading players from the brewing industry - United Breweries, ABInBev and Carlsberg - which together account for around 85 per cent of the beer sold in the country.

The West Bengal government recently announced 2-4 per cent increase on alcohol beverages, except beer, with effect from December 1, 2025.

It has kept taxes on beer unchanged, which according to BAI "reflects a practical and balanced approach to increasing state revenues".

This may help the West Bengal government collect Rs 600-700 crore, thus making up for the estimated GST shortfall of Rs 500 crore due to recent reduction in rates, it added.

“The decision to leave beer out of the tax increase is welcome since beer is already taxed 35 per cent higher than liquor in real terms. Globally, most governments tax products with low alcohol content less compared to hard liquor for desired public health outcomes," said BAI Director General Vinod Giri.

Excise revenue from alcohol contributes 10-25 per cent of the state's own tax receipts, making it one of the most dependable levers of state finance.

"With limited revenue autonomy in other areas, state governments often turn to the alcoholic beverages industry for revenues. Such actions, when well considered and data-driven, can not only help generate more taxes but also encourage more responsible alcohol consumption," said BAI.

States as Maharashtra, Assam and Meghalaya have also implemented similar policies to great success.

Maharashtra increased taxes on spirits by 50 per cent leaving beer intact, and its total tax revenues have gone up by 16 per cent.

"The BAI anticipates that, as the policy-making cycle commences across other states, more may recognise the efficacy of this holistic strategy. This approach serves the dual objective of maximising fiscal returns while promoting crucial public health outcomes by encouraging moderate consumption," it said. PTI KRH KRH ANU ANU