<p>The state government on Monday rolled out the new excise policy that shifts from the decades-old bulk litre-based system to one pegged on the alcohol content in beverages.</p><p>Karnataka becomes the first state in India to adopt this model but the change is set to make cheap liquor pricier even as premium brands get a price cut.</p> .<p>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.”</p><p>However, local liquor manufacturers alleged it is designed to favour MNCs manufacturing beer and spirits at the cost of homegrown distilleries. While premium and imported labels from giants like Diageo, Pernod Ricard, United Spirits, Bacardi, Heineken and Carlsberg could see prices drop by 16-20%, budget options especially popular 180 ml tetra packs of whisky, rum, brandy, gin and vodka face hikes of 20-30%.</p> .<p>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%.</p><p>In contrast, slabs 6-8 — covering alcoholic beverages manufactured by MNCs United Spirits, Bacardi, Heineken, Carlsberg and Anheuser Busch — have seen their AED decrease by 10-15%. As a result, they are expected to emerge as the primary beneficiaries of these changes. 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.</p><p>A senior member of KBDA noted that last year, a 180 ml (quarter) bottle in the starting slab cost Rs 63. Following an immediate hike to Rs 80, the new policy is set to push that price further to Rs 105 a jump driven by a 42.8% tax bracket.</p>
<p>The state government on Monday rolled out the new excise policy that shifts from the decades-old bulk litre-based system to one pegged on the alcohol content in beverages.</p><p>Karnataka becomes the first state in India to adopt this model but the change is set to make cheap liquor pricier even as premium brands get a price cut.</p> .<p>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.”</p><p>However, local liquor manufacturers alleged it is designed to favour MNCs manufacturing beer and spirits at the cost of homegrown distilleries. While premium and imported labels from giants like Diageo, Pernod Ricard, United Spirits, Bacardi, Heineken and Carlsberg could see prices drop by 16-20%, budget options especially popular 180 ml tetra packs of whisky, rum, brandy, gin and vodka face hikes of 20-30%.</p> .<p>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%.</p><p>In contrast, slabs 6-8 — covering alcoholic beverages manufactured by MNCs United Spirits, Bacardi, Heineken, Carlsberg and Anheuser Busch — have seen their AED decrease by 10-15%. As a result, they are expected to emerge as the primary beneficiaries of these changes. 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.</p><p>A senior member of KBDA noted that last year, a 180 ml (quarter) bottle in the starting slab cost Rs 63. Following an immediate hike to Rs 80, the new policy is set to push that price further to Rs 105 a jump driven by a 42.8% tax bracket.</p>