Bengaluru
oi-Madhuri Adnal
Liquor prices in Karnataka, home to Bengaluru, are set to rise again, with the state government preparing to roll out a revised excise duty structure from May 1. This will be the fifth increase since the Congress government assumed power, adding further pressure on regular consumers, especially those in middle and lower income groups.
The new liquor policy introduces a shift to an Alcohol by Volume (ABV) based taxation system. Under this structure, excise duty will be calculated based on the alcohol content in each bottle. In effect, beverages with higher alcohol strength will attract higher taxes. While this may slightly ease prices for certain premium low alcohol products, commonly consumed liquor is expected to become costlier, with an estimated increase of up to 20 per cent.
Starting May 1, Karnataka revises its liquor excise duty to an Alcohol by Volume (ABV) system, meaning higher alcohol content attracts higher taxes, likely increasing prices for common Indian Made Foreign Liquor by up to 20%.
At present, liquor pricing in Karnataka is tightly controlled by the state. Manufacturers declare ex factory prices, based on which the government fixes the maximum retail price. Liquor is divided into 16 price slabs, with each slab attracting a different level of additional excise duty.
The biggest impact will be seen in the first four pricing slabs, which together account for nearly 80 per cent of Karnataka’s excise revenue. Indian Made Foreign Liquor such as whisky, rum, brandy and gin is expected to see a price increase of around ₹15 to ₹25 per quarter bottle.
Slab-wise revisions indicate a clear upward shift.
- Slab 1 revised from ₹80 to ₹95
- Slab 2 revised from ₹95 to ₹110
- Slab 3 revised from ₹120 to ₹135
- Slab 4 revised from ₹150 to ₹170
In practical terms, the maximum retail price of a full bottle could increase by ₹50 to ₹100 depending on the category. Prices at bars and restaurants may rise further due to additional service charges.
For example: Premium imported spirits such as Black Dog and Black & White Scotch may see a 5 to 15 per cent price drop, while budget Indian Made Foreign Liquor (IML) such as DSP Black Deluxe is set to become costlier by 11 to 16 per cent.
Beer prices are also expected to see a marginal increase, particularly for strong beer variants with higher alcohol content. Regular beer may remain relatively stable, but it is unlikely to be completely unaffected under the new tax structure.
The repeated hikes have triggered criticism from both consumers and liquor traders. Many argue that frequent price revisions are steadily increasing the financial burden on regular buyers. There is also growing sentiment among sections of consumers that higher excise collections are being used to support government welfare schemes.
