Punepulse | February 2, 2026
Alcohol lovers may need to spend more on their favourite drinks after the Union Budget 2026–27. Changes in taxes announced in the Budget have pushed up liquor prices across the country, and the impact is expected to be felt soon at retail stores and bars.
As per early estimates, a liquor bottle that earlier cost around ₹1,000 may now be priced between ₹1,050 and ₹1,100, or even more in some states.
Why are liquor prices going up?
The main reason for the price hike is an increase in indirect taxes. The government has raised the Tax Collected at Source (TCS) on alcohol meant for human consumption from 1% to 2%. This change directly adds to the final cost paid by consumers.
Apart from TCS, there have also been revisions in customs duties and other indirect taxes related to alcohol. While liquor taxation is mainly controlled by state governments, changes at the central level often lead to higher prices across states.
How much more will consumers pay?
Industry experts say the price rise could be ₹50 to ₹100 per bottle on average, depending on the type of liquor and the state.
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Premium and imported brands are likely to see sharper increases, especially in big cities.
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Cheaper or locally made liquor may see smaller hikes, but prices are still expected to rise.
State excise duty will matter
Since alcohol excise duty is decided by individual states, final prices will vary from state to state. In the past, some states have sharply increased excise duty after Budget announcements, leading to price hikes of 30–50%. Whether similar increases happen this time will become clear in the coming weeks.
Impact on consumers and businesses
Higher prices may change buying habits. Some consumers may switch to cheaper brands or cut back on consumption, while others—especially in cities—may continue buying premium alcohol. Bars and restaurants are also expected to increase menu prices to cover higher costs.
Mixed reactions to Budget 2026
While the Budget has brought relief by reducing prices of some essentials, electronics, and medicines, alcohol and tobacco have become more expensive, leading to mixed reactions among consumers.
With summer and social gatherings around the corner, the price hike is likely to be felt more strongly. Clear state-wise prices will emerge once state governments announce their excise duty decisions.
The Aabkari(Abkari) Times magazine occupies a unique niche in the Indian media landscape. As the only Hindi monthly magazine dedicated to alcohol, liquor, excise, and allied industries, it caters to a specific audience with a specialized knowledge base.
