Published May 17, 2026 | 6:55 PM ⚊ Updated May 17, 2026 | 6:55 PM
With the rollout, Karnataka has become the first Indian state to tax liquor based on its strength rather than volume.
Synopsis: Karnataka has revised liquor prices under a new Alcohol-in-Beverage (AIB)-based excise duty structure that taxes alcohol based on strength rather than total volume. The revised slabs, announced in the 2026-27 Budget and effective from 11 May, make low-strength beverages such as beer relatively cheaper than stronger spirits such as whisky.
The Karnataka Excise Department on Sunday, 17 May, notified revised liquor rates under the new Alcohol-in-Beverage (AIB)-based excise duty structure, under which taxes are levied on actual alcohol content rather than total volume.
The structure, announced by Chief Minister Siddaramaiah while presenting the 2026-27 Budget, came into effect in the state on 11 May 2026. With this, Karnataka becomes the first state in the country to link liquor taxation directly to alcohol content.
The earlier system, followed by several states across India, largely taxed liquor based on volume rather than strength.
As a result, a standard 750 ml bottle of low-strength beer and a 750 ml bottle of high-strength whisky could attract broadly similar taxes despite significant differences in alcohol content.
The new excise duty structure changes this, making beer relatively cheaper because it has lower alcohol content than whisky. Manufacturers and brewers’ associations welcomed the move, saying it was in the interest of public health.
Under the new structure, the number of excise slabs has been rationalised and reduced to eight from 16.
Slab 1 covers the most affordable segment, with 750 ml bottles priced below ₹470. Subsequent slabs move up across price brackets, with Slab 8 covering premium liquor priced above ₹5,000.
The revised rates cover popular Indian Made Liquor (IML) and beer brands, with prices varying by slab structure, pack size and alcohol content.
Also Read: Karnataka to drop sugar disclosure on beer labels; brewers relieved, health experts wary
