Beer excise duty up for the fourth time in two years: A night out in Bengaluru will now cost you more

It’s Friday night in Bengaluru. You walk into your favourite pub, order your usual bottled beer, and realise it costs `20 more. Add a second round, maybe a snack or two, and suddenly, your go-to way to unwind is starting to strain the wallet. A recent 5% hike in excise duty on bottled beer – the fourth revision in just two years – has made the city’s favourite social drink more expensive. And that’s not all. The Karnataka government has also proposed doubling the annual license renewal fee for pubs and bars from July 1, a move that could push prices even higher. In a city where beer culture is practically a social ritual, what do these back-to-back policy moves mean for the average consumer and the nightlife scene?

‘Back-to-back hikes threaten Bengaluru’s nightlife’
“It’s definitely less cheers and more tears for Bengaluru’s nightlife,” says Ananth Narayan, proprietor, Just BLR, a bar on Brigade Road. “A seemingly small 5% hike triggers a cascading effect, leading to a two- or three-fold price raise as every entity in the ecosystem adds their extra. This isn’t sustainable. We’ve witnessed this cycle before – previous tax increases led to dipping excise collections and businesses going into the red. Now, with four fee revisions this year and a 100% jump in annual license renewal fees, this is a death knell for the industry.”

‘A regular weekend activity now feels more like a splurge’
Amid back-to-back price revisions, pub-goers are actively seeking more affordable alternatives, leading to a noticeable change in how they socialise. “We used to split three towers, now we split one and get fries or switch to rum – which is cheaper,” says Siddharth M, a techie in the city.
Eden Heredia, marketing professional, notes, “When I first moved to Bengaluru in 2022, I remember going out quite often, especially on weekends. Fast forward to 2025, and things have definitely changed. Cover charges at pubs and clubs have gone up, and by the end of the night, the food and drink bill can really add up. What used to be a regular weekend activity now feels more like a splurge.”



‘Hikes will undoubtedly impact social consumption’
Praveen Rao, general manager of Kaavu, a bar and kitchen in Whitefield, says, “On the consumer side, the impact might not be direct as customers have choices. This might lead consumers to shift from bottled beers to other alcoholic beverages, potentially causing bottled beer sales to drop.”
Vinay Chandrashekar, founder of Long Boat Brewing Co., a brewery in Marathahalli, and adds, “The beer industry will take a hit because consumers will start moving to cheaper alternatives. This will undoubtedly impact social consumption, particularly at house parties, where affordability will become a greater consideration.”

Karnataka’s costly cheers
In its fourth liquor price hike in under two years, the Karnataka government has increased the additional excise duty (AED) on beer from 195% to 200%




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