Karnataka Rolls Out New Alcohol Excise Policy; Will Booze Get Cheaper In The State?

Karnataka folks, here’s an important update for you! The state government has introduced a new Alcohol-in-Beverage (AIB)-based excise duty system, leading to revised liquor prices across Karnataka. Under the new structure, the prices of several alcoholic beverages, including whisky, rum, vodka, gin, and brandy, have been changed across multiple price slabs. Read on to know more about this.

Karnataka Introduces New Alcohol Excise Policy

To rationalise liquor pricing and make alcoholic beverages more affordable for consumers in Karnataka, the state government has introduced a new Alcohol-in-Beverage (AIB)-based excise duty structure. The move is also aimed at aligning liquor prices with neighbouring states such as Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, and Kerala.

According to Moneycontrol, the revised pricing model is in line with Chief Minister Siddaramaiah’s 2026–27 Budget announcement. It is also being described as the first initiative of its kind in India. In the press note, released on Sunday, the State Excise Department said, “For the first time in India, the AIB-based excise duty structure has been implemented in Karnataka from May 11, 2026. It is globally recognised as the gold standard for alcohol taxation.”

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What Does This Mean For Your Favourite Spirits?

According to Deccan Herald, Karnataka’s revised liquor pricing has made several premium alcoholic beverages cheaper across the state. Beer prices, especially for mild and lager variants with 5% Alcohol by Volume (ABV), have dropped by nearly 20-25% under the new excise structure.

Popular beer brands such as Kingfisher, Heineken, and Budweiser have become more affordable, with price cuts ranging from around ₹20 to ₹75 on 650 ml bottles.

Premium imported Scotch whiskies have also seen major reductions. Brands like Johnnie Walker and Chivas Regal are now expected to cost nearly 20% less, bringing down the price of a 750 ml bottle by over ₹1,000 in some cases.

However, the new pricing system has increased the cost of several lower-end liquor brands. Affordable whiskies such as Original Choice and Bagpiper could become up to 25% more expensive. Meanwhile, premium spirits from global liquor companies like Diageo and Pernod Ricard may see price cuts of around 16–20%.

Also Read: What Is The Difference Between Single Malt And Double Malt Whisky? Which Tastes Better?

Let us know your thoughts on this in the comments.

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