Bengaluru: The Karnataka government has rolled back its earlier proposal to double liquor license renewal fees. Instead, from July 1, the renewal fees will now go up by 50%—a move taken after opposition from liquor sellers and craft alcohol producers.
Earlier in May, the government had proposed a 100% hike in fees, which was expected to bring in ₹600–700 crore in extra revenue. However, after strong pushback from industry bodies like the Karnataka Liquor Sellers’ Association, the state opted for a more moderate increase.
In a relief to license holders, the validity period of excise licenses has also been extended from 1 year to 5 years—a long-standing demand of the alcohol industry.
New License Renewal Fees Based on Area:
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Metro areas (over 20 lakh population): ₹9 lakh/year
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Other metro areas: ₹7.5 lakh/year
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Municipal corporations: ₹6.75 lakh/year
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Towns and Panchayats: ₹6 lakh/year
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Other regions: Based on local population
Revised Fees for Other Excise Categories:
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Distillery & Brewery: ₹1.5 lakh/year
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Craft Brewery: ₹25,000/year
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Fortified Wine Producers: ₹25,000/year
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Distillery & Warehouse: ₹67 lakh/year
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Bars at International Airports: ₹18.75 lakh/year
This is the first excise fee revision since 2016. Despite repeated attempts to raise fees over the years, the hikes were delayed due to industry protests. With this new order, over 13,000 license holders across Karnataka will now need to renew their licenses at the updated rates.
