Karnataka new excise policy: Local liquor to get costlier, premium may get cheaper
Bengaluru: The state government on Monday rolled out a new excise policy that shifts from the decades-old bulk litre-based system to a model based on alcohol content in beverages, Deccan Herald reported.
Karnataka becomes the first state in India to adopt this model. The change is expected to make lower-priced liquor costlier, while some premium brands may see a reduction in prices.
A senior Excise Department official said: “The policy is being implemented from today (May 11). The Karnataka Excise (Excise Duty and Charges) (2nd Amendment) Rules, 2026, notified after a public consultation on a draft released on April 18, slashes the number of excise slabs from 16 to 8.”
Local liquor manufacturers have alleged that the policy favours multinational companies producing beer and spirits over domestic distilleries.
According to the Karnataka Brewers and Distillers Association (KBDA), the first five slabs, which cater to the common man, house the maximum number of state-owned distilleries and contribute nearly 70-75% of the state’s excise revenue, have seen their Additional Excise Duty (AED) rise by 20-30%.
In contrast, slabs 6 to 8, which include products from multinational companies such as United Spirits, Bacardi, Heineken, Carlsberg, and Anheuser-Busch, have seen AED reduced by 10-15%. The association said that while larger companies can absorb pricing shifts across their diverse portfolios, smaller regional distilleries limited to budget liquor may face volume contraction and potential closure.
A senior KBDA member said the price of a 180 ml bottle in the lowest slab, which was around Rs 63 last year, has already risen to Rs 80, and the new policy is set to push that price further to Rs 105 a jump driven by a 42.8% tax bracket.
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Hijab decision taken out of fear of Karnataka Muslim convention, alleges Kumaraswamy
Bengaluru: Union Minister H. D. Kumaraswamy has alleged that the Karnataka government announced its decision on the hijab issue out of fear of the ‘Karnataka Muslim Convention’ scheduled to be held in Bengaluru on May 16 organized by Federation of Karnataka Muslim Organisations.
Addressing a press conference at the JD(S) state office, GP Bhavan, in Bengaluru on Thursday, Kumaraswamy said he respects all religions and has expressed his views on the issue on several public platforms in the past.
Questioning the timing of the government’s move, he said the Congress has been in power for three years and had taken no decision on the hijab issue during that period.
He alleged that the decision was taken only because the ‘Karnataka Muslim Convention’ is scheduled to be held at Town Hall in Bengaluru on May 16.
“If the government had the courage, it should have taken this decision immediately after coming to power. Why did it remain silent for three years?” he asked.
Kumaraswamy accused the Congress of making the announcement to appease a particular community.
He further said the matter is still pending before the courts and claimed that an interim order relating to the hijab issue remains in force.
According to him, issuing such an order before the legal proceedings are concluded amounts to disrespect towards the judiciary.
Kumaraswamy also alleged that the Congress brought the issue back into focus after the Davanagere by-election results.
