Bengaluru: Liquor manufacturers in Karnataka have raised concerns regarding the state government’s proposed excise policy, highlighting that the changes could impact different segments of the industry in varying ways.
According to industry sources, the proposed policy introduces a revised taxation structure that is expected to place greater emphasis on alcohol content rather than the existing price-based slabs. The move is part of the government’s broader effort to streamline excise duties and align the framework with evolving regulatory practices.
Distillers have submitted their representations to Chief Minister Siddaramaiah, outlining potential implications of the new system. They have indicated that the revised structure may lead to changes in pricing dynamics across categories, particularly between premium and mass-market products.
→ UP Begins Preparations for Excise Policy 2027-28, Stakeholder Meetings from September 28→ Supreme Court Says Alcohol Prohibition Does Not End Alcoholism, Cites Gujarat’s Hooch Tragedies
The industry has also sought clarity on how the proposed system will be implemented and whether transitional measures will be introduced. Manufacturers have noted that any significant change in the duty structure could influence production planning, pricing strategies, and market positioning.
The Karnataka government has been working on reforms in the excise sector with the objective of rationalising taxation and strengthening revenue mechanisms. Officials have stated that stakeholder consultations are part of the policy development process.
Industry stakeholders have requested that their inputs be taken into account before the policy is finalised. They have also emphasised the need for a balanced approach that ensures stability across all segments of the liquor market.
The government is currently reviewing feedback from various stakeholders, and a final decision on the excise policy is expected after the consultation process is completed.
About the Author
