Karnataka excise dept exceeds revenue target for 5 months of current fiscal

Bengaluru: Five months into the current financial year, the state government has not only met but exceeded its excise revenue target. Karnataka Excise Minister R B Timmapur, sharing data compiled by his department, said that, against the stated revenue target of Rs 16,290 crore for the months of April through August, the state had collected Rs 16,358 crore.

“Our overall target for the 2025-26 financial year is Rs 40,000 crore, and we have already collected more than 40% of our annual target,” said the minister.

Pointing out that the state had collected Rs 68.78 crore above its target for the first five months, Timmapur credited the department’s success to the officials, whom he lauded for plugging leaks in the system.

“Moreover, we have initiated disciplinary action against 31 Group ‘A’ officials, 20 Group ‘B’ personnel and 43 Excise Sub-Inspectors for negligence,” the minister added.

Timmapur said that preventing entry and sale of narcotics in the state would further bolster excise revenue. “Those bringing spirit powder in small packets, which they use to make huge volumes of liquor must be identified and dealt with sternly. Officials have been instructed to strictly enforce the Narcotics Drugs and Psychotropic Substances (NDPS) Act,” the Excise Minister added.

A digital system allowing excise licence to be renewed online once every five years would be rolled out soon. “This will help curb corruption, and ease the process for issuing CL-7 licence,” added Timmapur.

Orders have been issued to implement 95% of the 62 recommendations made by the Administrative Reforms Commission, added the minister.

Meanwhile, Timmapur said that 93,751 liquor, 13,453 litres of toddy, 4,257 litres of illicit liquor, and 7,503 litres of jaggery wash had been confiscated following raids on illegal liquor manufacturing units.

Timmapur said that the government would not open any new MSIL outlets, adding that the licence of deactivated MSIL outlets, and other stores, would be auctioned. “Of the 579 defunct licences, 74 are for CL2 stores,” said the minister.

Dip in beer sales

There has been a dip in the sales of beer in the first five months of 2025-26 compared to the previous year. While 207 lakh litres of beer were sold between April and August 2024, the figure for the corresponding period in 2025 is 164 lakh litres. Meanwhile, 285 lakh litres of Indian Made Liquor (IML) have been sold in the first five months of the current fiscal year.

Since the price of the premium liquors in Karnataka is a bit high compared to neighbouring states, the government is contemplating revising the rates, said Timmapur.