The Karnataka government has implemented the alcohol-based excise duty (AIB) structure in the state and revised the liquor rates.
In a press note issued on Sunday, the state excise department said the new tax structure, implemented for the first time in India in line with Chief Minister Siddaramaiah’s Budget 2026-27 announcement, aims to rationalize pricing of liquor, make liquor available at cheaper prices to consumers in Karnataka and align prices with neighboring states, including Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra and Kerala.
“For the first time in India, the AIB-based excise duty structure has been implemented in Karnataka with effect from May 11, 2026. It is globally recognized as the gold standard for alcohol excise,” the ministry said.
Under the new policy, government-run price fixation has been completely liberalized, she said, adding that placement of the product within the panels has been left to the producers based on market considerations.
As per the government notification dated May 8, India Made Liquor (IML) slabs have been rationalized and reduced from the earlier 16 slabs to eight slabs.
The excise department said the restructuring was implemented keeping in mind the availability of liquor at cheaper prices to consumers in the state and ensuring that they are lower and relatively equal to those in neighboring states like Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra and Kerala.
The revised prices notified by the excise department include popular Indian Made Liquor (IML) and beer brands, with prices varying according to slab structures, pack sizes and alcohol content.
