The Karnataka government is likely to increase liquor prices from May 1 as it prepares to revise excise duties once again. This would be the fifth such hike in recent years, and it is expected to affect consumers, especially those in middle- and lower-income groups.
According to a draft notification, the state plans to introduce a new taxation system based on Alcohol-in-Beverage (AIB) content. Under this model, drinks with higher alcohol levels will attract higher taxes, replacing the earlier pricing method.
Officials say the new policy is meant to make taxation more logical and aligned with drinking patterns. However, industry experts believe the immediate impact will be higher prices for most commonly consumed liquor. While some premium, low-alcohol products may see slight adjustments, most popular categories could become up to 20% more expensive.
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The first four price slabs, which contribute nearly 80% of the state’s excise revenue, are likely to see the biggest changes. Liquor such as whisky, rum, brandy, and gin may become costlier by ₹15 to ₹25 per quarter bottle.
Estimated price revisions suggest slab-1 liquor could rise from ₹80 to ₹95, slab-2 from ₹95 to ₹110, slab-3 from ₹120 to ₹135, and slab-4 from ₹150 to ₹170. For full bottles, prices may increase by ₹50 to ₹100, depending on the brand and alcohol strength.
Consumers may feel an even bigger pinch in bars and restaurants, where additional charges and taxes could further push up the final bill.
The proposed hike has drawn criticism from both consumers and liquor traders. Many feel that frequent increases are putting extra financial pressure on regular buyers. Some retailers say the government appears to be relying heavily on liquor taxes to boost revenue.
There are also claims that higher excise collections are being used to support welfare schemes, though officials insist the move is aimed at improving tax structure and ensuring stable revenue.
As the proposal is still in draft form, more details are expected soon. If implemented, the new excise system could significantly change liquor pricing across Karnataka and continue to fuel debate over taxation policies.
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