Karnataka govt raises liquor tax by 20% based on alcohol content; prices to soar

Karnataka govt raises liquor tax by 20% based on alcohol content; prices to soar

Mangalore Today News Network

Bengaluru, May 13, 2026: Karnataka government has announced a 20% increase in liquor tax under a new policy linked to the alcohol content in beverages, leading to a sharp rise in liquor prices across the state.

Under the newly introduced “Alcohol in Beverage” policy, taxes will now be imposed based on the percentage of alcohol present in each bottle. As a result, liquor with higher alcohol content will attract higher taxes, while beverages with lower alcohol levels will face comparatively lower taxation.

Following the revision, prices of Indian-made liquor, including whisky, rum, brandy, gin and vodka, have increased by 20% to 30%. The price of 180 ml tetra packs of whisky, rum, brandy, gin and vodka in Karnataka has gone up by at least 20%.

The hike is expected to hit lower-income consumers the hardest, as the first four liquor slabs — which contain an average alcohol content of 42% — have become significantly more expensive. These four slabs alone account for nearly 80% of the state’s total excise revenue.

Liquor prices at bars and restaurants are also expected to increase further above the Maximum Retail Price (MRP).