Low liquor in Karnataka will be more expensive, while some premium brands could be cheaper. | Photo credit: File photo
With a new excise duty regime that taxes the amount of alcohol in a bottle and adjusts it for social costs coming into effect on Monday (May 11), lower-end liquor in Karnataka is set to become more expensive, while some premium brands could become cheaper.
The final price after the changes is likely to be known by Tuesday (May 12), as many manufacturers were yet to complete the formalities on Monday (May 11). However, it has been announced that some brands of whisky, bourbon whisky, beer, gin, brandy, vodka and liqueurs – in both the premium and mass market segments – will see minor price changes effective from Tuesday (May 12).
The new policy, which aims to discourage consumption of high-alcohol spirits, is estimated to increase sales of cheaper high-alcohol drinks by about 15% to 20% this year, and prices will be revised over the next three to four years. Premium drinks with low alcohol content will be taxed at a lower rate. The high alcohol content of Indian Made Liquor (IML), which is consumed by the lower classes, brings more than 70% of the excise revenue to the exchequer.
A number of manufacturers were yet to make a formal announcement on price and ‘Alcohol in Beverage’ and the Karnataka State Beverage Corporation Ltd. (KSBCL), through which the liquor is distributed, did not sell any IML or beer on Monday (May 11). Sources said only a small amount of wine and soft drinks were distributed on Monday (May 11).
KSBCL sources said the prices will be calculated automatically once the price band in which the manufacturer wants to place its product along with alcohol, excise duty and additional excise duty is announced. “There will be no manual intervention. Every milliliter of pure alcohol in the liquor will be taxed,” they said.
The policy, which reduces the complicated slab system to eight from the earlier 16, is based on the recommendations of the KP Krishnan-led Resource Mobilization Committee on Excise Reforms and calibrates the price of alcohol in the state with social costs, including the cost of medical treatment at public health centres, consequences of drunken accidents and domestic violence. The social cost is estimated at ₹1,200 per liter of alcohol in 2024-25. It is estimated to increase to around ₹2,000 per liter by 2028-29. According to this new calculation, the lower liquor with high alcohol content becomes expensive.
Published – 12 May 2026 0:34 AM IST
