img

Suspense crime, Digital Desk : A proposed, massive hike in liquor license fees by the Karnataka government has sent shockwaves through the state's hospitality and distillery sectors, sparking fierce opposition from local businesses who claim the move will be ruinous. Seizing the opportunity, the neighboring state of Andhra Pradesh has made a bold play, openly inviting disgruntled businesses to relocate.

The controversy stems from a new draft proposal in Karnataka that suggests increasing various liquor license fees by an eye-watering 200 to 500 percent. Under the proposal, the annual fee for a distillery license would skyrocket from ₹2 lakh to ₹10 lakh, while the fee for microbreweries would jump from ₹1.25 lakh to ₹5 lakh.

Industry leaders are calling the move "draconian" and "unscientific." They argue that such a steep and sudden increase would be a death blow to small and medium-sized businesses, including restaurants, bars, and local wineries, potentially leading to widespread closures and significant job losses. The Federation of Wine Merchants of Karnataka has warned that the policy could inadvertently encourage the sale of illegal, non-duty-paid liquor, defeating the government's aim of increasing revenue.

As Karnataka's liquor industry braces for a fight, Andhra Pradesh has spotted a golden opportunity. In a clear and strategic move, Andhra's Industries and Commerce Minister, T.G. Bharath, has publicly extended an invitation to Karnataka's distressed distillers.

"We welcome all the distillers from Karnataka to Andhra Pradesh," Bharath stated, promising a far more favorable business environment. He highlighted his government's commitment to providing single-window clearances, industry-friendly policies, and a stable, supportive ecosystem for businesses to thrive.

This has turned a state-level policy dispute into a high-stakes competition between two neighboring states. While Karnataka's government looks to boost its revenues, it now risks a potential exodus of an entire industry, which its rival is more than ready to “spirit away.”


Read More: Shashi Tharoor Shares Insights from State Dinner Hosted for Vladimir Putin in New Delhi

Latest breaking news Latest post breaking news Karnataka liquor license fee hike andhra pradesh T.G. Bharath distillery relocation Excise Policy hospitality industry microbrewery business news state tax Government Policy economic competition Investment Ease of Doing Business single-window clearance liquor industry alcohol business wine merchants industry opposition State government karnataka news Andhra Pradesh industrial policy economic development tax revenue business-friendly state interstate competition investment destination distilleries wineries breweries job losses illegal liquor black market Government regulation Economic Policy Indian business news South India state politics Trade and commerce license renewal financial burden small business enterprise restaurant and bar policy backlash tax hike investment climate state economy industrial policy business migration.