<p>Welcoming the reform-oriented announcements for the Alcobev sector in the <a href="https://www.deccanherald.com/tags/karnataka-budget">Karnataka Budget</a> for FT26/27, Anant S Iyer, Director General, Confederation of Indian Alcoholic Beverage Companies (CIABC) said rationalisation in the excise slabs is a positive step which is going to be beneficial for certain segments of the industry.</p>.<p>Iyer added that if the duty slab rationalisation is accompanied by increase in duty in slabs 1 to 4which constitutes 85% to 90% approx of Spirits sales in Karnataka (in the absence of country liquor) and is the primary driver for the excise revenue collection, then such an increase will lead to a further drop in sales in these slabs and adversely impact revenue in the medium term.</p>.<p>“The Alcohol-in-Beverage based taxation announced in the Karnataka budget is a historic milestone and a beacon for <a href="https://www.deccanherald.com/tags/excise-policy">excise policy</a> reforms across India. Linking of taxation with the quantity of alcohol in the product is based on the premise that product to be taxed is alcohol and not water. </p>.<p>It is widely followed all over the World now and is encouraged by health bodies such as the WHO. </p>.Karnataka Budget 2026 | Liquor prices in state no longer to be fixed by govt, here’s what changes.<p>By adopting the need to optimise revenue and public health goals of moderation, the Government has reinforced the State’s image as a progressive reformist leader in the country,” said Vinod Giri, Director General, Brewers Association of India.</p>.<p>“The budget recognises the role played by the alcobev sector in the socio-economic fabric of the society and contains several steps to modernise controls and improve ease of doing business. It also underlines the role of the sector in the hospitality industry by allowing beer and whisky trails as done in other countries,” said Giri.</p>.<p>On Friday, Chief Minister Siddaramaiah announced sweeping reforms in the state's liquor taxation and regulatory framework, including the introduction of a new alcohol-based duty structure, deregulation of price fixation and technology-driven monitoring systems.</p>.<p>The chief minister said Karnataka will adopt a globally recognised taxation system that links excise duty to the alcohol content of beverages.</p>
<p>Welcoming the reform-oriented announcements for the Alcobev sector in the <a href="https://www.deccanherald.com/tags/karnataka-budget">Karnataka Budget</a> for FT26/27, Anant S Iyer, Director General, Confederation of Indian Alcoholic Beverage Companies (CIABC) said rationalisation in the excise slabs is a positive step which is going to be beneficial for certain segments of the industry.</p>.<p>Iyer added that if the duty slab rationalisation is accompanied by increase in duty in slabs 1 to 4which constitutes 85% to 90% approx of Spirits sales in Karnataka (in the absence of country liquor) and is the primary driver for the excise revenue collection, then such an increase will lead to a further drop in sales in these slabs and adversely impact revenue in the medium term.</p>.<p>“The Alcohol-in-Beverage based taxation announced in the Karnataka budget is a historic milestone and a beacon for <a href="https://www.deccanherald.com/tags/excise-policy">excise policy</a> reforms across India. Linking of taxation with the quantity of alcohol in the product is based on the premise that product to be taxed is alcohol and not water. </p>.<p>It is widely followed all over the World now and is encouraged by health bodies such as the WHO. </p>.Karnataka Budget 2026 | Liquor prices in state no longer to be fixed by govt, here’s what changes.<p>By adopting the need to optimise revenue and public health goals of moderation, the Government has reinforced the State’s image as a progressive reformist leader in the country,” said Vinod Giri, Director General, Brewers Association of India.</p>.<p>“The budget recognises the role played by the alcobev sector in the socio-economic fabric of the society and contains several steps to modernise controls and improve ease of doing business. It also underlines the role of the sector in the hospitality industry by allowing beer and whisky trails as done in other countries,” said Giri.</p>.<p>On Friday, Chief Minister Siddaramaiah announced sweeping reforms in the state's liquor taxation and regulatory framework, including the introduction of a new alcohol-based duty structure, deregulation of price fixation and technology-driven monitoring systems.</p>.<p>The chief minister said Karnataka will adopt a globally recognised taxation system that links excise duty to the alcohol content of beverages.</p>
