No more bottles in Karnataka, tax draft issued on the quantity of intoxicant, cheap liquor may become expensive

News India Live, Digital Desk: Karnataka government is going to change its decades old excise policy. Under the new proposal, tax on liquor bottles will now be present in their MRP slab instead of Pure Alcohol Will be charged based on quantity. If this draft is finalized, Karnataka will become the first state in India to adopt the ‘alcohol-in-beverage’ (AIB) taxation model on the lines of western countries.

1. What is the new ‘ABV’ tax model?

Currently, there are 16 different price slabs in Karnataka, on the basis of which tax is decided. According to the new draft:

Tax on pure alcohol: For ‘pure alcohol’ per liter on distilled spirits (e.g. whiskey, rum, vodka) Rs 1,000 It is proposed to impose excise duty of Rs.

Slab Cut: Government reduced 16 price slabs to only 8 slabs Is planning to do so, which will simplify the tax structure.

rate control: Now instead of deciding the prices itself, the government can give freedom to manufacturers to decide the prices according to the market (Deregulation).

2. What will be the effect on your pocket?

According to experts and ‘Wine Merchants Association’, this change will lead to increase in the prices of liquor. 10% to 20% May increase up to:

Hit on cheap liquor: The biggest impact will be on those brands which are cheap but have high alcohol content. For example, a 180 ml (quart) bottle which is currently available for Rs 80-95, will now cost Rs. Rs 105-110 can happen till

Beer and Wine: Prices for low-alcohol beer and wine may remain stable or even see a slight decline, as the model is designed to promote less alcoholic beverages.

3. Government’s target: Revenue of Rs 45,000 crore

Chief Minister Siddaramaiah had hinted at these reforms during the Budget 2026-27 itself.

Revenue Target: The government has decided to increase the excise duty from the excise sector for the financial year 2026-27. Rs 45,000 crore The target has been set to collect.

Transparency: This step is expected to curb liquor smuggling and tax evasion, as every liter of alcohol will be digitally accounted for.

4. When will the new rules come into effect?

The government has sought objections and suggestions from the general public and people associated with the liquor industry on this draft notification. It is expected that after considering the suggestions it will in the next few months It will be implemented in stages, so that there is no sudden major fluctuation in the market.