Higher the alcohol content in your drink, more you pay in Karnataka

As Karnataka moves towards a new ‘Alcohol in Beverage’ (AIB) policy with respect to excise taxation, prices of whiskey, gin, rum and other beverages with higher alcohol content – majorly consumed by people of economically weaker sections – are set to go up.

A draft proposal by the Excise Department to implement the AIB, which was announced by Karnataka’s Chief Minister Siddaramaiah in the 2026-2027 budget proposals, not only brings down the excise duty slabs from the current 16 to 8, it also increases the cost of the ‘stronger’ alcohol beverages. A Government source said that under the new Excise policy, the alcohol will be taxed based on ‘per mil litre’ in the beverage.