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Karnataka draft Alcohol in Beverage policy to cut duty slabs and raise prices on stronger drinks

Karnataka is moving toward a new Alcohol in Beverage policy for excise taxation. A draft proposal by the Excise Department, announced by Chief Minister Siddaramaiah in the 2026-27 budget proposals, would lower excise-duty slabs from 16 to 8 and raise prices on stronger alcoholic beverages. The policy targets beverages like whiskey, gin, and rum, which are widely consumed by economically weaker sections.

Why It Matters

If enacted, the policy could raise prices for high-alcohol drinks, impacting consumers, especially those in lower-income groups.

Timeline

2 Events

Article published reporting the policy draft and implications

April 21, 2026

The article published on April 21, 2026 describes Karnataka's move toward the Alcohol in Beverage policy, noting that prices of whiskey, gin, rum and other high-alcohol beverages are expected to rise.

Budget proposal announces draft Alcohol in Beverage policy and duty-slabs change

April 21, 2026

A draft proposal by the Excise Department to implement the Alcohol in Beverage policy was announced by Chief Minister Siddaramaiah in the 2026-27 budget proposals. The proposal would reduce excise duty slabs from 16 to 8 and increase the cost of stronger alcoholic beverages.