SOURCE ; NEW18
Last Updated:May 06, 2025, 09:56 IST
The Karnataka excise department has been tasked with collecting Rs 40,000 crore in the current fiscal year, up from Rs 38,600 crore last year.
Revised liquor prices could take effect this week to meet revenue goals.
In a move that has stirred widespread frustration among consumers, the Karnataka government is reportedly preparing to hike the prices of hard liquor including whiskey, rum, gin, and vodka, marking the third such increase since the Congress party assumed power. This latest blow comes just days after beer prices were raised, triggering concerns over a steep and sustained rise in alcohol costs across the board.
According to official sources, the revised liquor prices could take effect as early as this week, as part of a broader effort by the government to meet its ambitious revenue goals. The Excise Department has been tasked with collecting Rs 40,000 crore in the current fiscal year, up from Rs 38,600 crore last year – a target now driving aggressive pricing strategies.
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As part of the proposed changes, the price of liquor across multiple slabs is expected to rise. Slab-1, currently priced at Rs 80, and Slab-2, at Rs 155, are both due for upward revision. While specific figures are still under discussion, initial estimates suggest an increase of Rs 10 per quarter bottle and anywhere between Rs 50 to Rs 100 per full bottle. Four of the sixteen existing price slabs are expected to be revised in this round.
These developments have not gone down well with regular consumers. Many have taken to social media and local forums to voice their discontent, arguing that liquor is being unfairly used as a soft target to boost state revenues. “We understand taxes, but three hikes in such a short time? It’s becoming unaffordable,” said one disgruntled drinker outside a Bengaluru liquor store.
Adding to the dismay is the recent hike in beer prices. Under new tax rules introduced by the state, the additional excise duty on beer has jumped from 195% to 205% of the production cost, a significant increase that has already pushed up retail prices. Premium beer brands now cost up to Rs 10 more per bottle, while cheaper, local varieties have seen price increases of Rs 5 or less.
Previously, Karnataka maintained a dual taxation system for beer, charging a flat Rs 130 per litre for lower-tier brands and a percentage-based rate for others. That system has now been replaced with a blanket 205% tax, which applies uniformly across all brands – a move industry experts say disproportionately impacts consumers of affordable options.
Despite the backlash, officials within the Excise Department defend the policy shift, arguing that the hikes are essential to meet budgetary obligations and maintain funding for public services. But critics worry that repeated price increases may drive more consumers toward unregulated alcohol markets, posing public health risks.
- Location :
Karnataka, India, India
- First Published:
May 06, 2025, 09:56 IST
