Karnataka government’s 50% hike in excise licence renewal fees this year is prompting bar and restaurant owners to consider raising food and liquor prices. The annual CL-9 licence fee has jumped from INR 6.9 lakh to INR 11 lakh, with similar increases across other licence categories.
Vadi Shenoy, owner of Tandoor Bar and Restaurant, said the rise leaves little choice but to adjust rates. “Both liquor and food prices will have to be increased by 5% to 10% in the coming days. If the government does not roll back the fees, we will implement the hike in two to three months, or before the year ends,” he said.
Others are pushing for alternative relief. Louis J Pinto, another bar owner, said his establishment is seeking an increase in profit margins from 10% to 20% instead of passing costs to customers. “This will be fair and help us avoid a price hike in a highly competitive market,” he noted.
Wine shop owners, who must sell at MRP, say they are hit hardest. “Margins were 20% before 2017 but removed later. Without reinstatement, survival is tough,” said Ramesh D Nayak of Rathna’s Wine Gate, citing rising rents, GST, and operating costs alongside price hikes affecting mainly lower and mid-range liquor.
Source:TOI
