Karnataka draft liquor policy explained: Budget booze to be costly, premium spirits cheaper, says Nomura report
Mint·2h ago·Neutral
What Happened
Karnataka's Congress-led government proposed an alcohol taxation policy based on actual alcohol content in beverages. Budget liquors would become costlier while premium spirits face lower taxes. The state currently levies 83% excise on liquor. If implemented, Karnataka would be India's first state adopting the Alcohol-in-Beverage taxation model, common in Western countries. Industry stakeholders warn of market disruption affecting low-income consumers.
Key Entities
KarnatakaCongress-led governmentAlcohol-in-Beverage (AIB) taxationBengaluruWine Merchants Association83% excise tax